What lies the future of OUR Financial News?

My Dearest Moo Moo Cow,

Posted on Star Bizweek, KFH eyes jeweller

• Saturday May 12, 2007
  
  KFH eyes jeweller
  
  KUWAIT Finance House (KFH) is in discussions to acquire a 20% stake in DeGem Bhd for RM2 per share or RM53.6mil. The deal, says a source, will be concluded soon and following the acquisition, KFH will have board representation in the company.
  
  Now why would a Middle-Eastern financial conglomerate be interested to take up equity in a jeweller? According to sources, KFH's entry as a shareholder in DeGem may be in line with the latter making inroads to the jewellery market in the Middle East. It may be hoped that the company's foray into that region may be eased with KFH as a substantial shareholder.
  
  As at end last year, DeGem had a net asset per share of about 78 sen, while its shares had been trading below the RM1 band since May 2005 and only surpassed the mark end last month.
  
  News of this acquisition has heightened interest in DeGem and the company’s shares have gained by as much as 84% year to date, closing on Thursday at RM1.47.
  
  It is not clear which shareholders are parting with the equity, but the company’s substantial shareholders list is pretty straight forward with privately held Legion Master Sdn Bhd controlling some 51.7% of the company, while Diamond Landmark had almost 7%.
  Legion Master is the vehicle of the Choong family who helm the company while Diamond Landmark is controlled by Datuk Hassan Taib who has an additional 2.2% in his own name. – By Jose Barrock
  

And as EXPECTED my dearest Moo Moo Cow, that speculative NEWS was denied by DeGem, DEGEM BERHAD ("DEGEM" or "the Company") ARTICLE ENTITLED : "KFH EYES JEWELLER"

• We refer to the Exchange's letter dated 14 May 2007 in relation to the article appearing in The Star, Bizweek section, Page BW3, Saturday, 12 May 2007 and in particular to the following sentence which was carried in the article:-
  
  " .... Kuwait Finance House (KFH) .... to acquire a 20% stake in DeGem Bhd for RM2 per share or RM53.6 million ..."
  
  The Management of DEGEM have made due enquiries with the directors and the shareholders with substantial interests in the Company and none of them is aware of such a development.
  
  Any change in substantial shareholders of the Company will be announced in accordance with the Exchange's Listing Requirements and the Companies Act, 1965.

And that's not all!

Yes, that's more. In a separate article, the same reporter, wrote the following, MMC plans to list Saudi joint venture

• Saturday May 12, 2007
  
  MMC plans to list Saudi joint venture
  
  By JOSE BARROCK
  
  MMC Corp Bhd and its partner in the massive US$30bil (RM105bil) Jizan Economic City development project in Saudi Arabia, the Saudi Bin Laden Group, are believed to have secured a preliminary approval by the relevant authorities to list the joint-venture company (JVC), sources familiar with the matter tell BizWeek.
  
  It is understood that the two parties, having secured the green light, plan to list the JVC as early as end of this year or early 2008 on the Saudi Arabian Stock Exchange.
  
  Sources familiar with the company say that MMC may rake in anywhere between US$500mil (RM1.75bil) to US$700mil (RM2.4bil) from the flotation exercise, but declined to elaborate on the details of the initial public offering. Understandably, these details are in the midst of being worked out.

And when so many sources are required to report such a news, guess what?

Exactly!

It's simply getting EXTREMELY EMBERASSING!!!

ARTICLE ENTITLED: "MMC PLANS TO LIST SAUDI JOINT VENTURE"

• We refer to the above reported article that appeared in The Star, Bizweek, page BW4, on Saturday, 12 May 2007.
  
  We wish to inform Bursa Malaysia that we have not secured a preliminary approval by the relevant authorities to list the joint-venture company on the stock exchange of the Kingdom of Saudi Arabia.
  
  We are reviewing several options in relation to the funding required for the Jazan Economic City project, and the initial public offering ("IPO") and subsequent listing of the joint-venture company on the Saudi stock exchange is one option that is currently being explored. We will make appropriate announcements once there are significant developments on the IPO proposal.

Companies need to waste valuable time and public money just to answer such reporting which has proven baseless time after time again!

Sigh!