14 theSun | MONDAY JUNE 8 2009

business
Price Change KLCI
(RM) (RM) Points

Investors ask top US court

to delay Chrysler sale
WASHINGTON: Indiana pension funds asked the US weighs the cost of delaying” a sale, lawyers for the pension
Cannes
entries
down market summary
Supreme Court yesterday to immediately delay the sale of funds and the Indiana attorney-general said in seeking an 20% JUNE 5, 2009
pg 15
bankrupt automaker Chrysler LLC to a group led by Italian
carmaker Fiat SpA while they challenge the deal.
immediate stay.
The three state pension and construction funds also Bursa INDICES
FBMEMAS
CHANGE
7,213.54 +89.23
The request, which moves the legal battle to the high-
est court in the United States, was filed after a US appeals
argued the US government, which kept Chrysler afloat with
emergency loans before the automaker’s bankruptcy and likely COMPOSITE
INDUSTRIAL
1,075.50 +11.53
2,353.24 +16.16
court in New York approved Chrysler’s sale to a group led
by Fiat, a union-aligned trust and the US and Canadian
financed its Chapter 11 filing, overstepped its authority by
using bailout funds Congress intended for banks. to CONSUMER PROD
INDUSTRIAL PROD
315.42 +0.37
87.12 +2.38
governments.
The Chrysler ruling could set a precedent for the case of
“The public is watching and needs to see that, particu-
larly, when the system is under stress, the rule of law will extend CONSTRUCTION
TRADING/SERVICES
205.97 +1.55
145.21 +1.49
General Motors Corp, which is using a similar quick sale
strategy in its bankruptcy in New York.
be honoured and an independent judiciary will properly
scrutinise the actions of the massively powerful executive gains FINANCE
PROPERTIES
PLANTATION
8,401.51 +122.52
733.42 +15.90
5,442.27 +35.61
The appeals court late on Friday stayed the closing of branch,” the lawyers said.
the sale until this afternoon, giving the pension funds time “The issues presented by this case are of immediate and SHARE prices MINING 308.02 +24.32
FBMSHA 7,496.25 +70.82
over the weekend to ask the Supreme Court to block the enduring national significance,” they said. on Bursa Ma-
FBM2BRD 4,717.61 +69.90
sale while they appeal. Without a stay from the Supreme Court, the sale will laysia are likely TECHNOLOGY 14.81 +0.10
The pension funds, which hold about US$42 million close today, the lawyers said. to extend its
(RM147 million) of Chrysler’s US$6.9 billion (RM24.15 A federal bankruptcy judge in New York and the three- gains this week, TURNOVER VALUE
billion) in secured loans, have argued the sale unlawfully judge panel of the appeals court rejected the funds’ argu- supported by 2.104bil RM1.767bil
rewarded unsecured creditors such as the union ahead of ments in approving the sale. a strong fund
secured lenders and that Chrysler was pursuing an illegal Attorneys for Chrysler, the US government and Fiat all inflows into the market, dealers said.
reorganisation plan through a sham sale. have argued the sale should be allowed to go forward. Fiat They said the market is likely to attract more fund
“The need for the court to review the profound issues can walk away from the deal if it does not close by June managers eyeing a higher return quickly compared
presented by Chrysler’s novel bankruptcy sale far out- 15. – Reuters with the bond market which would take a longer time
to mature and the yield would be low.
“Any sign of recovery in the global economy
business councils. it would start selling its iMiEV electric minic- will encourage retail investors, especially the fund
He told reporters this after the signing ars next month to Japanese corporate and managers, to invest in the equities, commodities and
of a memorandum of understanding with government customers, spearheading the com- property,” a dealer said.
briefs the Perak Chinese Chamber of Commerce
and Industry yesterday.
mercialisation of zero-emission cars. – AFP However, he said, the gains may be slow as pull-
back or consolidation could be expected following the
Esam, who is also president of the Analysts: China may shun rally since the beginning of May and last week.
Federation of Gulf Cooperation Council “The question is whether the momentum is sus-
M’sia among nations best (GCC) Chambers of Commerce, said BCCI Aussie deals after Rio saga tainable. That will depend on the recovery in the global
able to beat global crisis is also interested in the food industry and SYDNEY: China may question the wisdom economy, especially the market in the US,” he said.
halal hub in Malaysia. of investing in Australian resources after On a Friday-to-Friday basis, the KLCI closed the
NEW DELHI: An international business survey Perak Mentri Besar Datuk Seri Dr Rio Tinto this week spurned a multi-bil-
ranked Malaysia among the top 10 countries week at 1,075.5, up 31.39 points from the previous
Zambry Abdul Kadir told reporters after lion-dollar link-up for a joint venture with
in the world to be able to survive the global week’s closing of 1,044.11.
a dinner with the BCCI delegation last bitter rival BHP Billiton, analysts say.
financial crisis the best. The Finance Index increased 397.02 points to
night the state government would find Rio hailed Chinalco – Beijing’s wholly-
The Servcorp International interviewed 8,401.51, the Industrial Index gained 31.14 points to
opportunities to develop conventional owned aluminium manufacturer – as a
7,500 businessmen worldwide to gauge the economic sectors such as manufacturing white knight when it offered A$19.5 billion 2,353.24 and the Plantation Index perked 146.5 points
mood, the impact of the economic recession with investments from BCCI members (RM54.6 billion) for an increased stake in to 5,442.27.
and to their knowledge the countries that and GCC. – Bernama the debt-laden miner last February, while The FMBEmas surged 229.33 points to 7,213.54,
would best survive the financial crunch. the global slump was at its worst. the FBM2BRD advanced 142.84 points to 4,4717.61,
Malaysia, along Sweden and Vietnam, was Yet as soon as commodities markets the FBM30 went up 176.58 points to 6,853.85, while
listed equally at the 10th spot as countries Japan automakers race picked up, Rio dumped Chinalco and cut the FBMMDQ rose 186.35 points to 4,226.04.
perceived to be able to survive the economic ahead with green cars a deal with BHP to create an iron ore joint Weekly turnover increased to 8.923 billion shares
crisis the best. Australia topped the survey, TOYOTA CITY: The world economy may still be venture in Western Australia’s Pilbara worth RM7.974 billion from 7.899 billion shares worth
with China second, and India and Singapore in deep crisis, and the global auto sector in the region worth an estimated A$140 billion RM8.034 billion the previous week.
were tied at the third spot. doldrums, but Toyota Motor’s vice-president (RM392 billion). Volume on the Main Board rose to 7.609 billion
Hongkong and Canada were ranked fifth Takeshi Uchiyamada has some good news. The deal, announced last Friday, will units valued at RM7.509 billion from 6.324 billion units
and sixth respectively. – Bernama After months of cutting output, closing see Rio receive A$5.8 billion (RM16.24 worth RM7.632 billion previously.
plants and laying off staff as its car exports billion) from BHP for the Pilbara joint ven- The Second Board’s volume climbed to 547.359
‘Grab business crashed, the world’s biggest automaker has ture and separately raise US$15.2 billion million shares worth RM255.268 million from 476.139
opportunities in Bahrain’ resumed overtime work to ramp up produc- (RM53.2 billion) through a rights issue. million shares worth RM213.275 million.
tion of its new Prius hybrid. Bell Potter Securities client adviser Turnover on the Mesdaq Market was higher at
IPOH: The Bahrain Chamber of Commerce Last month, an industrial survey said the Chris Kimber said China would be seeth-
and Industry (BCCI) yesterday invited 519.182 million shares valued at RM137.890 mil-
low-emission car for the first time topped Ja- ing at missing out on a deal it viewed as lion compared with 411.762 million shares worth
Malaysian entrepreneurs to expand their pan’s monthly domestic car sales – knocking an important part of its goal to guarantee
businesses in the Gulf country. RM100.502 million.
its main rival, Honda Motor’s Insight hybrid, long-term resource supplies. Call warrants, however, declined to 136.063 mil-
To promote their growth, BCCI chair- from first spot. “They’re going to find this very frustrat-
man Dr Esam Abdullah Fakhro said, the lion shares worth RM24.392 million from 224.018
Other carmakers are joining the race to ing because the reason they bid for Rio
chamber planned to forge cooperation million shares worth RM36.326 million previously.
build the green car of the future. in the first place was because they were
with its counterparts here by setting joint Mitsubishi Motors on Friday announced worried about their supply,” he said. – AFP – Bernama