What A Waste Of Time To Read Such News!

This was published on the Edge Weekly: 4 August 2008: Corporate: Is C&C Bintang making an exit?

Here's the first passage from that article.

• By Jose Barrock
  
  Hap Seng Consolidated Bhd's unit Si Khiong Star Sdn Bhd is among suitors for Cycle and Carriage Bintang Bhd's (C&C Bintang) longstanding Mercedes-Benz dealership in Malaysia, sources say.
  
  The other two names that have cropped up are the Naza Group and conglomerate Sime Darby Bhd. However Naza Group is unlikely to undertake the deal as management has its hands full while Sime Darby is also the dealer for BMW cars - a Mercedes-Benz rival - which may not bode well for the conglomerate.
  
  Speculation that C&C Bintang is exiting the Mercedes-Benz business has been rife, especially since its hefty payouts, which indicate that the company has no need for extra cash to grow its business.
  
  Over the past 10 years, C&C Bintang has paid out about RM10.40 per share in dividends, special cash payments and the likes, which is a significant number by any standards.
  
  Much of the payments have come in more recent times, much like the one last week when the company proposed to pay RM104.4 million or RM1.40 per share in special and interim dividends. The cash for this payout came largely from the proceeds of the disposal of assets and some wings of its motor business, which has been its mainstay.
  
  After the series of divestments, C&C Bintang is now left with its Mercedes-Benz dealership. Whether this dealership is up for grabs has been the topic of conversation for sometime now in industry circles, with all signs pointing towards C&C Bintang's controlling shareholder, the Jardine Matheson Group, looking at exiting the business. Jardine Matheson, via Jardine Cycle & Carriage Ltd, has about 60% equity in C&C Bintang.
  
  Names of companies such as Hap Seng Consolidated have been touted as likely suitors for the Merc dealership under C&C Bintang. However, nothing concrete has come of it, officials close to Hap Seng Consolidated say.
  
  Also C&C Bintang's former managing director Steven Gareth Foster (he left the company on July 18) declined to comment on the issue of a takeover by Hap Seng Consolidated when contacted by The Edge about two to three weeks ago.
  
  Some say Si Khiong Star was given the right to sell Mercedes-Benz cars to break C&C Bintang's monopoly, which means transferring the monopoly to Si Khiong Star now would not seem logical. Nevertheless, talk is rife of Si Khiong Star taking over C&C Bintang's Mercedes-Benz business. (read rest of article here )

Sources say, speculation, some say, talk.... is this what financial journalism is all about?

End result of such mischievous reporting?

It wasted Hap Seng's time to make the following announcement.

• HAP SENG CONSOLIDATED BERHAD Article entitled “Is C&C Bintang making an exit?
  
  Pursuant to paragraphs 9.09 and 9.10 of the Listing Requirements of Bursa Malaysia Securities Berhad, the Company, after having made due inquiry on the above, wishes to confirm that the Company has never made any representation to such effect and hereby deny information contained in the Extracted C&C Report

It wasted Cycle & Carriage time to make the following announcement.

• ARTICLE ENTITLED: “IS C&C BINTANG MAKING AN EXIT?” IN THE EDGE FOR THE WEEK OF AUGUST 4 – AUGUST 10 2008
  
  We refer to the above article in The Edge and wish to clarify that the story about the Company exiting the Mercedes-Benz business is unfounded and untrue. This matter was never considered by the Board.

It wasted Bursa Malaysia time to make both these query.

And it certainly wasted the reader's time to read such financial news!

How?