Media giant Fairfax Media has admitted it was duped by an “elaborate hoax” which claimed US banking firm Citigroup had obtained a controlling stake in telco giant Telstra.
Citigroup has now referred the fake press release to investigators, saying the elaborate hoax needs to be cleared up.
The fake press release came through news desks on Sunday, with the story suggesting that Citigroup was announcing plans to acquire more than 50% of Telstra “via a cash-and-share deal to boost competitiveness and efficiency”.
“Citigroup’s investment in Telstra marks the beginning of a new era of growth for the company,” the fake email reportedly said.
The Australian Securities and Investments Commission has said it would investigate the email, but would need to determine if it had any market impact before taking legal action.
“ASIC would need to examine whether the hoax email had any impact on the market and also whether we could locate the originator of the email to take any action,” a spokesperson told SmartCompany.
The Age placed it on the front page of its website for 20 minutes before the hoax was revealed. The story also appeared on other parts of the Fairfax network, including the SMH, Brisbane Times and WAToday sites, and on Google News.
“It was an elaborate hoax and we are reviewing the incident. As part of that review, we will be looking closely at our processes,” Fairfax Media group executive editor Philip McLean told the The Age.
It is understood the email was believed to be genuine because the person who generated it used a specific email address used by an AAP correspondent in Los Angeles.
“Citi denies any plans to take a majority investment in Telstra,” a Citigroup spokesman told AAP.
“Reports of any such investment are untrue. Citi has referred this matter to relevant regulators to investigate the source of this false report.”
AAP said it is attempting to investigate the origins of the fake email.
Telstra and ASIC were contacted for comment, but no reply was received before publication.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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