PKR expresses concern over mega-merger

Oleh English Section KUALA LUMPUR, Nov 29 (Hrkh) - Parti Keadilan Rakyat (PKR) today expressed its concern over the possibility of a merger involving three plantation giants namely Sime Darby Bhd, Golden Hope Plantations Bhd and Kumpulan Guthrie Bhd.

"First, the proposal was not initiated by one of the three companies or its substantial shareholder – Permodalan Nasional Berhad (PNB) - but rather by an investment bank," PKR treasurer Tan Sri Abdul Khalid Ibrahim said.

In a statement, Abdul Khalid said statements by PNB which indicated that the trust fund's manager "has no idea about the proposal" as "very frightening".

Surely the statement came as a shock to the more than 8 million investors in various PNB's trust funds," he said.

Abdul Khalid also pointed out that the study on the proposal for the merger that was mooted by Synergy Drive Sdn Bhd – an entity that will be created to take over the plantation giants - should have come out publicly.

"If the information used were not restricted to public documents, than the issue of insider trading comes to fore," he said.

He also noted that deputy Prime Minister Datuk Seri Najib Tun Razak and Prime Minister Datuk Seri Abdullah Badawi had commented as "a good thing" for the merger to take place but questioned how this could have happened when both leaders were also the trustees of Yayasan Pelaburan Bumiputra, the parent entity of PNB.

"The Kuala Lumpur Stock Exchange, Securities Commission and the minority shareholders watchdog must take all steps necessary to ensure the interest of minority shareholders are not compromised in this process," he said.

Abdul Khalid is believed to be commenting on media reports on the impending merger of the three plantation giants.[ES]