Hero denies Multipolar acquisiton market rumors<\/p>\n
JAKARTA (JP): Hero Supermarket denied yesterday a market rumor
\nthat it would be bought by Multipolar Corporation, a Lippo Group
\nsubsidiary.<\/p>\n
Anton Lukmanto, Hero's director told The Jakarta Post
\nyesterday that Multipolar was very interested in the publicly
\nlisted firm, Hero, but most Hero shareholders did not want to
\nsell.<\/p>\n
He said the rumor was groundless and disturbed Hero's
\nmanagement.<\/p>\n
"It seems the rumor was started to effect prices," he said.
\n"This is not the first time there has been a rumor like this."<\/p>\n
Similar rumors spread in January.<\/p>\n
Anton said neither Hero nor Multipolar had plans to form a
\nstrategic alliance.<\/p>\n
Bisnis Indonesia yesterday reported that Multipolar was
\nconsidering purchasing Hero shares in the second half of the
\nyear.<\/p>\n
The daily said this would strengthen Multipolar's position as
\nthe largest retail business player in the country.<\/p>\n
"Let's see what happens in the second semester this year,"
\nLippo Group's managing director Roy E Tirtadji said.<\/p>\n
Roy said Lippo Group was concentrating on consolidating some
\nof its widely diversified activities.<\/p>\n
A retail business analyst from ING Barings Securities said
\nthat almost all investors thought the rumored acquisition plan
\nwas just a market rumor.<\/p>\n
But she said it was possible that it was true even though Hero
\ndenied it.<\/p>\n
She said late last year there was a market rumor that
\nMultipolar would buy most of Matahari's shares. "Matahari denied
\nit but the deal later went ahead," she said.<\/p>\n
"It is a matter of time and will depend on negotiations
\nbetween both parties," she said.<\/p>\n
Last year Multipolar acquired 202.95 million Matahari shares
\nand made a tender offer for an additional 5.1 percent to increase
\nits shares to 50.1 percent.<\/p>\n
Meanwhile, the companies' share prices remained unchanged on
\nJakarta Stock Exchange yesterday. Multipolar closed unchanged at
\nRp 1,925 on a total transaction volume of 9.45 million shares
\nwhile Hero closed unchanged at Rp 2,450 on a total transaction
\nvolume of 2.84 million shares.<\/p>\n
Multipolar, which is 48.65 percent owned by PT Lippo Asia and
\n51.35 percent by the public, operates several big department
\nstores in franchising agreements with the United States' Wal-Mart
\nInternational and JC Penny.<\/p>\n
Hero was founded in 1971 and operates more than 60 stores
\nthroughout the country. It plans to open 11 more outlets in
\n1997. Last year it opened 11. (09)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/hero-denies-multipolar-acquisiton-market-rumors-1447893297",
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"sponsor": "Okusi Associates",
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