Time for the truth?

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Time for the truth?

Time for the truth?

Thursday, January 5, 2012
  • ECM-LIBRA
Now the people will know what transpired during the merger of Avenue Resources Bhd with ECM Libra

KUALA LUMPUR: In his latest post, blogger Big Dog seems to suggest that an on-going defamation case will provide insights into the controversial merger between Avenue Resources Bhd and ECM Libra.

 

Big Dog wrote on January 4 that it had been six years since the controversial merger took place during Tun Abdullah Ahmad Badawi's tenure as Prime Minister.


The post followed a news report that Umno youth leader Khairy Jamaluddin had been called to testify in a defamation suit filed by businessman Datuk Seri Kalimullah Masheerul Hassan against lawyer Matthias Chang.

 

Kalimullah filed the defamation suit against Chang on June 29, 2006 for allegedly making slanderous statements on June 13 that same year in a press conference, which were then published in the Singapore Straits Times.

 

Bernama reported on Wednesday that High Court Judge Datuk Asmabi Mohamad had dismissed the Umno Youth chief’s application to set aside a subpoena requesting that he testify as Chang’s witness in the suit.

 

The court also ordered Khairy to pay RM3,000 in costs to Chang.

 

On the merger, Big Dog pointed out several reasons it was highly controversial, including:


1. Undervaluation of Avenue shares.

2. Overvaluation of ECM Libra shares.

3. Unfair purchase terms on Avenue Capital to acquire ECM Libra subsidiaries.

4. Improper justification by independent advisers: K & N Kenanga Bhd.

5. Improper EGM (extraordinary general-meeting) for ECM Libra for the approval of the merger.

6. ‘Collusion’ of the various authorities in the whole scheme of things.

 

Despite complaints lodged with the Securities Commission (SC) by several people -- especially minority shareholders -- over the ‘irregular’ processes, EGM and eventually announcements made through media, the blogger said the matter had fallen on deaf ears.