Saturday, September 18, 2010

Dr M: Proton in no hurry to merge

KUALA LUMPUR: PROTON HOLDINGS BHD [] is financially stable and sees no hurry in merging with other car manufactures, according to its adviser Tun Dr Mahathir Mohamad.

"Financially, Proton is still okay. We too are not very anxious to merge at this moment,' the former premier told reporters after launching First Sovereign Advisory Sdn Bhd on Friday, Sept 17.

Dr Mahathir was asked to comment on the national carmaker's possible plan for merger after recent news report stated that DRB-Hicom was not actively looking to acquire a stake in Proton.

It was reported in late 2009 that DRB-Hicom had put in a bid to acquire 32% stake in Proton.

Dr Mahathir also said the national carmaker was in the midst of restructuring and would only be to''assess the value of its assets later on.

Last month, Perusahaan Otomobil Kedua Sdn Bhd (Perodua) said any merger with Proton was premature as Perodua has never been officially notified of such talks. However, Perodua stressed it welcomed any form of collaboration with Proton.

Prime Minister Datuk Seri Najib Tun Razak had mooted the idea of consolidation in the local automotive industry in July if there was overcapacity in the industry.

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