The decision to sell Proton's share in MV Agusta Motors SpA (MVAM) for one Euro was made carefully after the consideration of several factors.
Prime Minister Datuk Seri Abdullah Ahmad Badawi said that among the factors included a research by Credit Suisse Boston which found that Proton needed to release its share in MVAM.
"Proton was in a financial difficulty at that time, making it difficult for it to continue to provide financial assistance to MUAM,"

KUALA LUMPUR, Sept 3 (Bernama) -- The decision to sell Proton's share in MV Agusta Motors SpA (MVAM) for one Euro was made carefully after the consideration of several factors.

Prime Minister Datuk Seri Abdullah Ahmad Badawi said that among the factors included a research by Credit Suisse Boston which found that Proton needed to release its share in MVAM.

"Proton was in a financial difficulty at that time, making it difficult for it to continue to provide financial assistance to MUAM," he said in a written reply to a question from Teresa Kok (DAP-Seputeh) at the Dewan Rakyat here.

Kok wanted to know the rationale for Proton to sell its equity in MUAM for one Euro to Gevi SpA from Italy when the latter was able to sell one third of MV Agusta for Euro 93 million.

Abdullah who is also Finance Minister said that Proton which held a majority share of 57.75 percent in MUAM did not have full management control over MUAM.

"Proton's decision to give up MVAM to Gevi at that time was therefore appropriate considering Gevi was in a good financial position to take back MVAM together with its debts, for 1 Euro," he said.

The sale was to also allow Proton to focus on its core business which is the manufacture and sale of cars. It was the best option then for the sake of the company's operations and business.

"On the statement that Gevi managed to sell one third of MV Agusta for Euro 93 million, Proton has till todate made several investigations via public sources for confirmation on the accuracy of the said information but it has yet to receive any," he said.

Abdullah also said that by the time of the said business deal, Proton no longer had any business link with MVAM and the question of having made an error in business should not arise.

Source : BERNAMA