Stock market speculation throughout the week that United Motors PLC (UML) is being eyed for acquisition by Dubai-based Al Futtaim Group, which acquired the Associated Motorways Plc (AMW) late last month, was shot down by industry analysts as a false alarm.

"There is nothing like that. This was done to push the UML price up," a motor industry source said. However, analysts raised questions saying that Al Futtaim paid a steep price for AMW. "What they paid at Rs. 174.50 a share was not a cheap price. This raises questions about why they were not interested in UML which was available at a bargain price compared to AMW," a stock market analyst said.

An AMW official said that Al Futtaim was interested in the company as it is more diversified. "We are more diversified than UML. We are into the motor industry and many more things," the official said. He further said that Al Futtaim will bring in a new CEO by early next year.

On July 28, Associated Electrical Company and JKH together controlling 70 percent of AMW sold their stake to Al Futtaim which has a slightly higher stake in AMW after snapping up more shares in the market.