Hot Stock Maxis falls 0.3% as India business allegations swirl

by **Cals** Wed 03 Sep 2014, 22:46

Hot Stock Maxis falls 0.3% as India business allegations swirl

Business & Markets 2014

Written by Jonathan Gan of theedgemalaysia.com

Wednesday, 03 September 2014 11:06

KUALA LUMPUR (Sep 3): Maxis Bhd fell 0.31% in early trade as investors assessed the impact of business constriction charges in India against Maxis Communications Bhd (MCB), which is Maxis single largest shareholder.

In Malaysia, Maxis shares fell two sen or 0.31% to RM6.48 with 95,000 shares traded.
However, some analysts believed Maxis share trading dynamics were not due to the allegations.
MCB, in a statement yesterday, categorically denied all allegations of wrongdoing, and vowed to "vigorously pursue all legal remedies available to defend itself and the company's director Ralph Marshall ..."

An analyst told theedgemalaysia.com that Maxis shares fell due to normal trading activities and not because of the allegation.

“This is normal trading activity and not due to the news as the listed entity is not related to the party being charged,” he said, echoing MCB's statement yesterday which said that the development "... does not implicate and will not have any impact on Maxis Bhd, the entity listed on Bursa Malaysia Securities Bhd.”

The charges, filed by India's Central Bureau of Investigation, alleged that former Indian Minister of Communications and Information Technology Dayanidhi Maran had abused his official position and constricted the business environment of Aircel Ltd, an Indian telecommnication firm, with intent to coerce its then owner Siva Ventures Ltd (SVL) to sell Aircel to MCB.