updated version

Leading Chinese daily Sin Chew Jit Poh today denied any involvement, direct or indirect, with the controversial takeover of two rival newspapers by MCA investment arm Huaren Holdings.

In a press statement posted on its website at 5pm today, Sin Chew quashed rumours that it was eyeing a stake in Nanyang Siang Pau and China Press , publised by Nanyang Press.

When news of the MCA takeover broke, speculation was rife that Sin Chew was also involved, resulting in the latter coming under a hail of criticism and threats of boycott.

The reported participation of Sin Chew 's parent company, Pemandangan Sinar - which also publishes sister paper Guang Ming Daily - in the Nanyang takeover has raised fears that all four major Chinese dailies could fall into the hands of MCA.

The newspaper has until now kept mum over its reported involvement in the deal.

According to the statement which bore no signature, it said that " Sin Chew had learned that various political parties were involved in the proposed bid".

Scapegoat

"There are various forces competing for Nanyang in the market and those competitors have direct connections with various political parties," it said without naming the parties.

"Those forces competing for the acquisition of a stake in Nanyang had spread various information regarding the takeover (and gotten Sin Chew involved). Unfortunately, Sin Chew was made the scapegoat.

"However, after Huaren Holdings Berhad announced its 72.35 percent stake in Nanyang, the truth is out. It is proven that Sin Chew does not have any stake in the newspaper," the statement stressed.

Yesterday, it was announced that Huaren is buying tycoon Quek Leng Chan's 72 percent stake for RM230 million in cash. The deal is to be sealed on Thursday.

The statement noted that Nanyang Press was Sin Chew 's 'traditional' competitor, and therefore it was inappropriate for the latter to highlight news about the takeover.

It was referring to public criticism that the newspaper has failed to give proper coverage to news of the takeover.

"This was to avoid being dragged into the transaction or the much-talked-about deal."

" Sin Chew has never made any statement or affected any action which indicated that it has anything to do with the deal," the press statement said.

Personal decision

On the issue of its former staff, including key management personnel assuming positions in Nanyang Siang Pau and China Press , the press statement clarified that their decision was personal and had nothing to do with the company.

Among those who have moved is Sin Chew 's former chief executive officer PC Liew who was appointed chief operations officer of Nanyang Press effective today.

"Track record has shown that the jumping over of journalists from one newspaper to another is very common," the press statement said.

Before the Nanyang takeover, some of Sin Chew 's ex-staff had already been working with the former, it added.

"It is hoped that our explanation would clearly state Sin Chew 's stand on this matter and correct whatever misunderstanding the public has towards Sin Chew ."