The Kuala Lumpur Stock Exchange (KLSE) today suspended the shares trading of Utusan Melayu Bhd - publisher of the influential Malay-language daily Utusan Malaysia - pending the release of an announcement.

According to a Bernama report, the KLSE said trading in Utusan shares - which was last traded at RM1.96, after it shot up another RM0.18 this morning - will resume on Monday.

Since Tuesday, the value of Utusan shares have increased by a whooping 57 percent. The trading of the shares was suspended at 11.31am today.

However, the management of Utusan Melayu claimed that it was unaware of any corporate development that warranted the unusual activity in its shares.

Tycoon's hand

The suspension comes amid speculation that business tycoon Syed Mokhtar Al-Bukhary - a close associate of Prime Minister Dr Mahathir Mohamad - has bought a stake in the company.

A recent Reuters report quoting industry sources said the deal - an issue of new shares - was approved by the Utusan board last month.

The 51-year-old businessman reportedly acquired a 20 percent stake, leaving Umno - the main component party in the ruling Barisan Nasional - with 51 percent and the Finance Ministry six or seven percent.

Utusan Melayu said it offered various parties 31 million shares, which based on June 4 share price of RM1.32 would be worth RM41 million.

Its managing director Nasir Ali told Reuters a new investor named Nilam Setar Sdn Bhd had taken two-thirds of that offering under a deal announced in March.

Second venture

Although Nasir said he was unaware of who controlled Nilam Setar, a 'senior industry insider' pointed the finger at Syed Mokhtar, who is known to keep his name off the limelight.

The international news agency also quoted an unidentified source within the businessman's stable of companies as saying there has been talk in the group of buying a stake in Utusan.

This will be the tycoon's second venture into the newspaper business. The first was a misadventure in the country's leading English daily The Star, owned by Chinese-based political party MCA.

His RM400 million worth of shares in the daily were forcibly sold in 1998 - at the height of the regional financial crisis - by his bankers when he failed to provide extra collateral on loans taken.

Syed Mokthar has a diverse business empire ranging from interests in ports to a bookstore chain.