Olam International

[Bibi]

CEO Mr. SUNNY GEORGE VERGHESE bought 1 mil shares from open market @ price $1.54 today

Ahh, at least its 3 peanuts worth. He earn >$1.7mil and the 1mil shares is about his one year renumeration. Note that 87% of salary is performance base, so it makes sense for him to buy shares to boost sentiment.

[pianist]

how come olam debt bonds need not rated by external rating agencies? any idea?

[Muck]

how come olam debt bonds need not rated by external rating agencies? any idea?

There's no need to get it's bonds rated if a company is confident of demand for it's issue. SIA's unrated bonds issued in second half 2010 is but another example.

[pianist]

looking at the high yield for its bonds, i dun think there is a need to rate them as they are probably default 'junk' status

[Muck]

looking at the high yield for its bonds, i dun think there is a need to rate them as they are probably default 'junk' status

You're most prob right! That's why I think MW's offer to get Olam's debt rated is nothing short of brilliant.

[Some-one]

Looks like there is no end to Olam selling bonds. I wonder who would dare to buy them now considering what happens...

SINGAPORE--Olam International Ltd. (O32.SG) is planning to sell bonds and warrants in an effort to raise funds, people close to the development said Monday.

Olam's spokesman declined to comment ahead of a press conference at 1100 GMT.

The company halted trading in its shares before the market open Monday and said it will announce an initiative involving its shareholders.

Short seller Carson Block and his research firm Muddy Waters LLC. have criticized Olam in recent weeks for alleged flaws in the Singapore-listed firm's business and accounting practices, prompting the commodities trader to mount a concerted defense against the accusations.

The criticisms had prompted a selloff in Olam shares, which have fallen 9.5% since Mr. Block first commented against the company at an investor conference in London on Nov. 19.

Olam's stock closed 1% higher at S$1.575 on Friday.

[level13]

Olam asking for $$ yet again!
This time they are issuing rights.

http://info.sgx.com/webcorannc.nsf/Annou...endocument

[Some-one]

And the reason is to prove that they can access the capital market?? Seems to be more of a fund raising exercising to pay off debt in disguise. Just that they wrote it nicely to cover up...

*DJ Olam: Proposed Rights Issue to Demonstrate Ability to Access Capital Markets

[corydorus]

This is really puzzling. Is Olam saying regardless what the market thinking at this poor moment of time, it will continue to raise money to expand ??? Or there is something else ....

[Some-one]

Is this their so-call initatives??

SINGAPORE--Olam International Ltd. (O32.SG) will announce an unspecified initiative involving its shareholders before the stock market opens Tuesday, a move that comes as the commodities trader tussles with short seller Carson Block over claims that the Singapore-based firm faces insolvency.

Trading of Olam's shares will be halted for the whole of Monday ahead of its planned announcement, the company said in a filing to the Singapore Exchange.

"Olam is expecting to announce an initiative led by the company involving its shareholders," it said in the filing, adding that the trading halt will be lifted before the stock market opens Tuesday.

Muddy Waters LLC., a research firm owned by Mr. Block, has criticized Olam in recent weeks for alleged flaws in the Singapore-listed firm's business and accounting practices, prompting the commodities trader to mount a concerted defense against the accusations.

The criticisms had prompted a selloff in Olam shares, which fell as much as 11% a day after Mr. Block's claims emerged last week. Olam's stock ended Friday 1% higher at 1.575 Singapore dollars ($1.29).

Muddy Waters last week published a 133-page report that claimed Olam's debt exposure put it at risk of insolvency. Olam responded with a 45-page statement, denying the claims and accusing Mr. Block and Muddy Waters of seeking to profit from short positions on Olam's shares.

Olam has also sued Mr. Block and Muddy Waters in Singapore for alleged libel and slander.