It was an incredible that some so-called research house publishes a story based on 'sketchy details' and to make the matters worse, the research house can NOT even confirm the accuracy of the story.
And it was incredible that we have journalist trying to be analyst for the deal. On the Star Business, Will we see a mega telco-broadcaster soon?
On Reuters: Maxis unaware of Astro merger plan - report
- KUALA LUMPUR, June 2 (Reuters) - Malaysian telecoms firm Maxis Communications Bhd has denied that it will be relisted through media company Astro All Asia Networks (AAAN.KL), a newspaper reported on Tuesday.
"Maxis is not aware of any such proposal," the Business Times quoted a Maxis statement, sent to the paper, as saying.
OSK Research had said in a report on Monday that there were plans to inject Maxis into Astro. Both companies are controlled by businessman T. Ananda Krishnan, Business Times said.
"We understand from a source that Maxis officials and representatives had been pitching for the relisting exercise to a select group of individual investors overseas over the past two months," OSK analyst Jeffrey Tan said in the report.
Contacted about OSK's report, Astro said it "does not comment on market speculation or reports on specific opportunities", the newspaper said.
Maxis was previously listed before being taken private in 2007. (Reporting by Liau Y-Sing; Editing by Kim Coghill)
LOL! Understand from a source?????
Nice one!
Here's the harsher version of the news for OSK analyst Jeffery Tan.Maxis dismisses talk of merging with Astro
- Maxis says it considers the plan to inject Maxis into Astro contained in the OSK report to be 'totally without basis' and 'speculative'
Maxis Communications Bhd, a mobile phone operator taken private by its owners in mid-2007, has shot down market talk that it is eyeing a relisting through Astro All Asia Networks plc.
Both Maxis and Astro, a pay-TV operator, are controlled by billionaire businessman T. Ananda Krishnan.
"Maxis is not aware of any such proposal," it told Business Times in an e-mailed response late yesterday.
It issued the denial after OSK Research highlighted in a report speculation that a major corporate exercise was brewing at the highest level in Astro.
"Although details are sketchy, we gather that a plan is being mooted to inject Maxis into Astro. We understand from a source that Maxis officials and representatives had been pitching for the relisting exercise to a select group of individual investors overseas over the past two months," OSK analyst Jeffrey Tan said in the report yesterday.
Such a plan is not implausible given the strong paternal links of both companies, he said.
It was speculated that Astro might make an announcement relating to this at the Invest Malaysia conference later this month.
Maxis, however, said it considered the suggestions contained in the OSK report to be "totally without basis" and "speculative".
Astro shares rose yesterday, adding 5 sen, or 1.7 per cent, to an eight-month high of RM3.
The stock, which has long been dogged by talk of a potential privatisation, has been generally rising since hitting an all-time low of RM1.80 in mid-March.
Astro, when contacted about the report, said it "does not comment on market speculation or reports on specific opportunities".
Maxis, once the darling of telecoms investors, said when it was delisted in 2007 that it would consider a relisting when earnings were more stable over the next three to five years.
Should Maxis merge with Astro, the combined entity would be the largest listed telecoms "quadruple play" exposure in the country with a mobile and pay-TV subscriber base exceeding 11 million and 2.6 milion respectively, Tan noted.
This would pit it against Singapore's StarHub and SingTel, which have both embraced the quadruple-play strategy combining cellular, broadband, fixed-line and pay-TV businesses.
OSK maintained a "trading buy" call on Astro, with a target price of RM3.50.
How eh?
Did you not buy the tons of suggested in yesterday posting Maxis To Be 'Listed' Again?
Nice one eh OSK? So proud of you.
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