MALAYAN United Industries (MUI), the owner of Morning Star Holdings, had no reason to doubt the explanation given by the company's former owner, Lippo Ltd, about the $30 million downward revision in the travel group's profit forecast for 1993, according to Choo Teow Meng, managing director of MUI Hong Kong and Morning Star.
He said: ''The issue of doubt never came into the picture at all.
''They [Lippo Ltd] were very open to us.
''When we were negotiating to take over the company in December last year, Lippo told us that profits would be lower than the $30 million forecast earlier.'' Mr Choo was speaking after Morning Star's annual general meeting yesterday.
He said Lippo had told MUI that business in the second half of 1993 was not good.
When MUI was negotiating to take over Morning Star, Lippo had no idea of the final bottom line at that time, said Mr Choo.
