Where, oh, where do we place the Bloomberg news agency on this “visual thesaurus,” an interactive tool from Thinkmap that allows us to “discover the connections between words in a visually captivating display?” Words like GULLIBLE.
We ask because of the latest reporting howler, whereby Bloomberg — through its automatic republishing of external news sources — managed to distribute a seemingly fake takeover story involving Harman International, a New York-listed car stereo specialist. Without testing the news or putting it in any sort of context, the agency picked up some random report on a Middle Eastern website, AME Info, saying an hitherto unknown entity called the Arabian Peninsula Group was ready to buy close to 50 per cent of Harman at $45- a-share – just short of twice the market price quoted in New York on Friday night.
The Bloomberg story quickly disappeared from Bloomberg terminals, but not before the news had ricocheted around equity markets and a dubious “press release” had appeared on the odd blog.
Clearly, the Bloomberg ‘news bot’, like so many robotic trading systems, lacks that certain human touch that would otherwise keep everyone out of trouble.
Then, on Monday, with an astral flourish, the agency published an account of the hoax – without mentioning its own involvement.
July 20 (Bloomberg) — Harman International Industries Inc., a maker of audio systems for homes and vehicles, said it was unaware of a tender offer for the company that was the subject of “several media reports.”
The shares jumped as much as 10 percent in New York Stock Exchange composite trading, then pared the gains. Harman rose 22 cents, or 0.9 percent, to $25.40 at 10:10 a.m., about 45 minutes after the Washington-based company commented in a statement.
Harman “has become aware of several media reports suggesting that a tender offer has been made to acquire the company,” according to the statement. “The company has not received such communications and is not familiar with any parties claiming to make such a solicitation.” T
The Arabian Peninsula Group is seeking to acquire Harman in a public tender offer, AME Info reported on its Web site. AME Info is an Internet-based news service based in Dubai Media City in the United Arab Emirates, according to its Web site. The news service didn’t list a location for the Arabian Peninsula Group.
Now, Bloomberg has some form when it comes to facilitating hoaxes, stock raids and compounding the errors of other media organisations. Witness the “double-bankruptcy” of UAL and the hilarious (and fantastical) $10bn Pastorini bid for Goldfields.
How many feet do Bloomberg news editors still have waiting to be blown off?
Here, for the record, is a picture of the house where FT Alphaville lives…
Related links:
The Fake Sheikh is back in town – FT Alphaville
Earth to Bloomberg: The Gold Fields bid story is a hoax – FT Alphaville