The major headlines for this weekend newspaper business section pull-outs have been written; the only thing that needs filling in are the details. And if you need any reminding, the headlines will centre around UEMWorld restructuring plans. The group will be re-listed on 18 Feb; the suspension is pending an announcement relating to a major restructuring deal (from Bursa announcement board "material corporate exercise, which involves amongst others, a significant change in the business direction of UEM World"), involving UEMWorld and all its subsidiaries.
JP Morgan listed two possible scenarios. Scenario One, UEMWorld could privatize all its listed subsidiaries, turning it into a large conglomerate and up-streaming all the cash within the subsidiaries to finance the working capital needs for cash-hungry IDR (first of all the major economic corridors announced in the last 2 years, but progress is slow to say the least). Scenario Two, UEMWorld could sell its subsidiaries to foreign investors and channeling the cash needed for the IDR investment. JP Morgan reckons Scenario One is the likeliest option. What shall we call this conglomerate? UEMDrive or SimeUEM?
The details should be out later today.
Other major news...
Federal Reserve Chairman Ben S. Bernanke indicated that policy makers are prepared to lower interest rates further as the economy continues to deteriorate. (Bloomberg)
The Fed ``will act in a timely manner as needed to support growth and to provide adequate insurance against downside risks,'' Bernanke told the Senate Banking Committee in Washington today. ``A significant worsening in financial conditions or in credit availability would certainly be a warning bell that we need to take further action.''
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