Bapepam-LK difficult to prove allegation in Matahari

BI / exchange

06/02/2010

Irvin Avriano A.

Bisnis Indonesia

Bapepam-LK difficult to prove allegation in Matahari

JAKARTA: The Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) is still difficult to prove allegations inflated stock prices of PT Matahari Department Store Tbk (MDS), along with the action of the stock sales earlier this year.

Chairman of Bapepam-LK Ahmad Fuad Rahmany said the investigation that have been taken in capital market authorities find it difficult to prove allegations that, even after called several witnesses and and investors.

"They have called but claimed only buy at higher prices and claims not related at all with the company management, it was difficult to prove if they receive orders," said Fuad to the press today.

He also said the allegations were based on an illiquid stock price in the market but suddenly offered at high prices before the announcement of the acquisition of MDS by the subsidiary of Citi Venture Capital Partners Ltd (CVC), PT Meadow Indonesian.

According to him, it was inferred from several market analysts consulted by the Bapepam-LK MDS assess the illiquid stocks that are rarely tracked by capital market participants investment radar.

He also suspects the bubbling stock price is caused the stock price is not reasonable that enhanced the potential to become a reference for the stock price in the acquisition transaction of MDS which fueled.

Matahari Department Store Sales of shares was conducted by PT Matahari Putra Prima Tbk, with transaction worth IDR7.16 trillion.