Updates On DRB Hicom

The price weakness in the last hour of DRB Hicom scared many investors, well its probably because of the denial by the company following a query from Bursa. Its a usual query, do we really expect DRB to come out and say anything else. If they had received an offer from Etika Sdn Bhd, they would have had announced it already, there's nothing else they can say. They cannot even say that they received offers, as they would have had to announce that as well.

My view, and its purely mine, is the significantly abnormal jump in volume, sustained over days. Just a "play" would have been so unnecessary and silly for a person of the owner's stature. I have argued before, the timing is 'right', even the borrowing rates are very right to do it now. Doing it later, say 6 months, may land the company in even higher price range which will cause a much a higher bid for the deal to go through.

Rocky Bru seems to have a "scoop" of some kind which was posted at 6.41pm yesterday as well.

Type	:	Reply to query
Reply to Bursa Malaysia's Query Letter - Reference ID	:	NN-101209-35901
Subject	:	DRB-HICOM BERHAD (“DRB-HICOM” or “the Company”) - ARTICLE ENTITLED SYED MOKHTAR MULLS DRB-HICOM BUYOUT
Contents	:	We refer to the letter dated 9 December 2010 from Bursa Malaysia Berhad with regard to the above article appeared in the New Straits Times, Business Times, Cover Page on Thursday, 9 December 2010, in particular to the following sentences : (i) “Tan Sri Syed Mokhtar Al Bukhary is believed to be considering taking auto and banking group DRB-HICOM private….” (ii) “There has been speculation that Syed Mokhtar could offer anywhere between RM2.20 and RM2.70 for the DRB-HICOM shares he does not own” DRB-HICOM wishes to state that the Company is not aware of such proposal nor have we received any notice whatsoever to that effect from our holding company, Etika Strategi Sdn Bhd. This announcement is dated 9 December 2010.
Query Letter content	:	We refer to the above article appearing in the News Straits Times, Business Times, Cover Page on Thursday, 9 December 2010, a copy of which is enclosed for your reference. In particular, we would like to draw your attention to the underlined sentences which is reproduced as follows:- (i) “Tan Sri Syed Mokhtar Al Bukhary is believed to be considering taking auto and banking group DRB-HICOM Bhd private..." (ii) "There has been speculation that Syed Mokhtar could offer anywhere between RM2.20 and RM2.70 for the DRB-HICOM shares he does not own" In accordance with Bursa Securities' Corporate Disclosure Policy, kindly furnish Bursa Securities with an announcement for public release confirming or denying the above reported article in particular the underlined sentence after due and diligent enquiry with all the directors, major shareholders and all such other persons reasonably familiar with the matters about which the disclosure is to be made in this respect. In the event you deny the above reported sentence or any other part of the article, you are required to set forth facts sufficient to clarify any misleading aspects of the same. In the event you confirm the above reported sentence or any other part of the article, you are required to set forth facts sufficient to support the same. Please furnish Bursa Securities with your reply immediately. Yours faithfully CHONG FUI TZY Head, Issuers Listing Division Regulation

Scoop (?) from Rocky Bru, posted at 6.41pm yesterday:

Thursday, December 09, 2010

Pos Malaysia gets white knight

SYED MOKHTAR TO THE RESCUE. The world's richest Malay has emerged as the odds on favourite to capture Khazanah Nasional Bhd's 32.2 per cent stake in Pos Malaysia Bhd.

A decision on the sale is expected soon. It could cost the tycoon, whose family hails from Bukhara in modern day Uzbekistan, about RM700 million.

Syed Mokhtar is experiencing a renaissance of sort, after being kept out of the loop by the Abdullah Badawi administration.

It hasn't been a good year for Pos Malaysia, being hauled up by the Parliment's Public Accounts Committee. Syed Mokhtar will be expected to do what he has done in DRB-Hicom - haul up the deadwoods, and turn the rank and file into a fighting force ready for war! Syed Faisal Albar, a former CEO of NST, is the current group MD of Pos Malaysia.

at 6:41 PM