'His denial statements were very misleading, to say the least.'
This Chinese gentleman seemed to be suggesting that all businessmen should be allowed to be evasive as they see fit.
A leading analyst at James Capel (Far East) Ltd also came to the defence of Mr Deacon Chiu when requested by TARGET to comment on Mr Deacon Mr Deacon Chiu
Chiu's denials.
According to other financial analysts, given the fact that New World Development and the Lam Family have, at their disposal, considerable amounts of cash, the negotiations for the partial purchase of the television station be-
tween the 2 parties and Mr Deacon Chiu must have been formal (as op- posed to informal) from the very be- ginning and, as such, there existed a very real possibility that the negotia- tions could lead to a change in the
control of ATV.
'In the past, companies always requested the suspension of their shares at the slightest hint of a pos- sible change in the control of the companies or on the sale of major assets', these analysts reasoned to
TARGET.
These analysts were surprised that it had taken ATV Holdings
more than a month to have its shares
suspended from trading.
Before the cock crow twice, thou shalt deny me thrice.
They were also stunned by the failure of The Stock Exchange of Hongkong Ltd and the Office of The Commissioner for Securities to order the suspension in the trading of ATV's shares, when the rumours were doing their rounds as early as May.
Mr Marc Faber further opined that rules and regulations of the Office of The Commissioner of Securities are lax and, as a result, individuals can easily get away, unpunished, with improprieties.
"The Office of The Commissioner of Securities in Hongkong cannot sanction any individuals for any wrongdo- ings... the whole system is a joke', Mr Marc Faber com-
mented.
One Chinese broker (TARGET has agreed not to pub- lish his name), was apparently more sympathetic towards Mr Deacon Chiu than Mr Marc Faber was.
The Chinese broker said: 'Mr Chiu is a businessman. One should understand his position as a chairman of a publicly- listed company... Obviously he did not want to jeopardize the negotiations (of the sale of Asia Television)... He was merely protecting his own interests...'
-- Bible, Mark XIV:30
The analyst said: 'Mr Deacon Chiu had admitted all along that the televi- sion station had been approached by interested parties... He was not in a po- sition to be more specific on the sub- ject while the negotiation was still going on.' [Editor's note: Prior to the actual signing of the Sale and Purchase Agreement on June 19, Mr Deacon 'Chiu had merely admitted that ATV Holdings 'had been periodically ap- proached informally.']
The sale of ATV appears to be controversial not only because of the 'denials' or misleading statements of Mr Deacon Chiu, but a number of
minority shareholders of ATV Hold- ings are enraged by the absence of a General Offer for their shareholdings in the publicly-listed company.
Mr Marc Faber again: ‘ATV Hold- ings has nothing but the television station, and, in my opinion, the sale of Asia Television is, in practical terms, the sale of the publicly-listed company.
'I think they (the Lam Family and New World Develop- ment) should make a General Offer to the minority share- holders of ATV Holdings.'
Mr Marc Faber's view is shared by many, it seems.
One stockbroker said: "The transaction was done in such
a way so as to circumvent the Take-over Code, and I think the interests of the minority shareholders of ATV Holdings have been ignored in a clever but legitimate way.'
After the partial sale of the television station, the assets of ATV Holdings will comprise approximately $HK500 million in cash and a 33.33-percent stake in the television
station.
The Chiu Family has a track record of selling family assets to various publicly-listed companies under their control, and in view of this, it is not expected that ATV Holdings will be sitting on a bundle of idle cash for too long.
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