More On The Rumours Of Proton Divesting Edar To EON.

First they write that according To Sources: Proton to divest Edar to EON.

• Sources said that Proton will get EON shares in return for divesting Proton Edar. This would result in both Proton and DRB-Hicom controlling the distribution of the national automaker’s vehicles.
  
  It also effectively puts EON back to its original position as the sole distributor and authorised servicing agent of the national car.
  
  It is not clear how much equity Proton will end up having in EON. At the moment, DRB-Hicom controls 79.05% of EON while Kualapura Sdn Bhd, the private vehicle of Rin Kei Mei, holds 12.1% in the auto distributor.

( those three passages were rather funny in my opinion. On one hand, they have their sources telling them a massive scoop that Proton will be divesting their Proton Edar. On the other hand, they are not clear exactly how much Proton will get. How can their sources be so inefficient? LOL! )

Since it was written by Jose Barrock, the financial reporter who has an incredible history of reporting based on incredible sources in recent years, it surprised me not that Proton and EON denied this corporate exercise.

See blog posting According To Dunno What Rumours: Proton Is NOT .. and Proton says not selling retail arm to EON

On today's Edge Financial Daily, another article was published: Proton in the spotlight

The following passages was rather interesting.

• That has been reflected in the near-doubling of the company’s share price to RM2.99 on Monday from the trough of RM1.53 on March 30 — a 95% jump in three weeks. The stock hit a 12-month low of RM1.50 on March 19. Proton added another 13 sen to close at RM3.12 yesterday, with nearly three million shares done.
  
  The Edge Financial Daily reported yesterday that Proton was looking to inject its distribution arm Proton Edar Sdn Bhd into Edaran Otomobil Nasional Bhd (EON) in return for a stake in the latter.
  
  It also reported that the rationalisation exercise was part of a bigger automotive consolidation exercise with a possible merger between Proton and the second national car project under Perusahaan Otomobil Nasional Kedua Sdn Bhd (Perodua).
  
  In reply to queries by Bursa Malaysia Securities yesterday, Proton said it had signed a memorandum of understanding (MoU) with EON in May last year to rationalise the national car’s sales and service network. Proton said the parties were still in discussions to finalise the deal.
  
  Proton was silent on the speculation of a possible merger with Perodua.
  
  “Further, the board of directors of Proton wishes to inform that as a proactive business entity, Proton and its subsidiaries will continue to initiate and consider various business opportunities and arrangements,” it said.
  
  EON, in a separate statement, said it was not aware of any plan for it to acquire Proton Edar. However, it also pointed to the MoU with Proton on the rationalisation of the sales and service network, adding that an announcement would be made as and when necessary.

Some issues for me.

• That has been reflected in the near-doubling of the company’s share price to RM2.99 on Monday from the trough of RM1.53 on March 30 — a 95% jump in three weeks. The stock hit a 12-month low of RM1.50 on March 19. Proton added another 13 sen to close at RM3.12 yesterday, with nearly three million shares done.

Makes one wonder when the stock had already jumped so high and yet the Edge Financial Daily decided to publish an incredible rumour based on 'sources'.

Makes one wonder the intention of the article, yes?

Market is now closed for lunch session.

Proton is now down 3.8% and DRB-Hicom is down 5.5%.

How?

What if one bought based on what was published on the Financial Edge article, Proton to divest Edar to EON?

Do we call these share buyers as foolish and gullible?

What about the author and its sources?

How?

• The Edge Financial Daily reported yesterday that Proton was looking to inject its distribution arm Proton Edar Sdn Bhd into Edaran Otomobil Nasional Bhd (EON) in return for a stake in the latter.

Today's article was written by Thomas Soon.

I am curious lah.

Since Proton is now in the sportlight and the spolight is caused by the one reporter who is also from the Edge Financial Daily, why can't Mr.Soon ask Mr. Barrock what happened to the news told by his sources?

Now wouldn't that be grand?

Simple solution no?