The Power of the Source In Bandar Raya Alleged Privatzation!

2 full trading days later, Bandar Raya is finally queried about its alleged plan to be privatized.

• Reference is made to Bursa Malaysia Securities Berhad's query on the above article appearing in The New Straits Times, page 40, Biznews Section on Monday, 2 July 2007 drawing our attention to the underlined sentence in the said article, reproduced below:
  
  "....Bandar Raya Developments Bhd ..... may be taken private......."
  
  We wish to inform Bursa Malaysia Securities Berhad that we have referred your query to the Company's major shareholder, Ambang Sehati Sdn Bhd ("ASSB"), and to the members of our Board for their comments.
  
  After making due and diligent enquiry, the Board of BRDB wishes to inform that :-
  
  (a) ASSB has informed the Company that ASSB currently has no plan to take BRDB private.
  
  (b) The Board has not received any proposal from any other party to take BRDB private.

No privatization deal?

Am I not surprised.

Bandar Raya last traded at 3.56 before that publication titled, Bandar Raya Dev may go down privatisation route.

• PROPERTY developer Bandar Raya Developments Bhd (BRDB), which is planning a billion-ringgit real estate investment trust (REIT) in three years, may be taken private, sources say.
  
  "There is a lot of value in the company and its shareholders may consider a privatisation plan to unlock potential value," said a source.

Bandar Raya closed today at 4.10.

The privatization story had clearly driven the stock UP a whopping 54 sen!

I asked again.

• If Bandar Raya denies this story, then would you consider this as a stock spam, used to drive up the stock price?
  
  If so, shouldn't there be an investigation on who the source of the misleading info?
  
  Did the source passed this information to the press with the sole objective of gaining from this misleading information?