Bumi Modern suspension continues
Monday, February 28 2000 - 04:00 PM WIB
The suspension in trading of Bumi Modern stocks continues despite the company's promise to bear all the responsibility, should its planned rights issue would harm the interest of the investing public in the future.
"We are still studying the company's statement but honestly we have not received any clarification about its controversial rights issue," Harry Wiguna, a director of the Jakarta Stock Exchange (JSX), said in Jakarta last week.
After a number of delays due to opposition form the Capital Market Supervisory Agency (Bapepam), Bumi Modern finally held an extraordinary shareholders meeting recently to decide its plan to acquire the United Kingdom-based Gallo Oil Ltd, which has majority interest in an oil block in Yemen.
The company secured the approval from the shareholders to carry out the takeover plan but the JSX later suspended the trading of its shares as the company provided no detailed information about the fixed schedule of the rights issue and the impact of the takeover to the company's operation. (*)