Returns Olam, Muddy contempt

Singapore - weeks before the stock jump higher and higher, the giant 1250000000 Product dollars (S $ 1.52 million) to raise funds, announce the flight to Mars, but in U.S. waters, a day after the short sale "almost inevitable" that is only delaying the collapse of he poured the company's rights issue.

Five years, all of the world's Temasek Holdings to invest $ 500 million a year, with the possibility of other more compact, increasing to $ 750 million of 6.75 percent bonds on Monday proposed to shareholders for the ad is 16.3 percent.

Own independent assessment of the operation and the nature of the world, Temasek said yesterday decided to support him.

Discussions with banks and investment company Temasek confirmed that the case concerns a loan made in the world.

Capital World Investors S $ 1.60 S $ 1.71 at the close of the first to profit from the rising intraday high of 8.6 percent on Monday, after the trading halt, or 1.6 percent, piled removed.

This is the most actively traded over 89 million shares traded value and volume was the third most active.

"We have the right to move to 100 percent of Temasek's commitment to investor fears about the risk of bankruptcy of the world, I believe we will calm down," DMG & Partners analyst pays the price when Chun Seng, said the target of S $ 2.20.

But other analysts were less optimistic. Bloomberg Maybank Kim Eng analyst James now that he reported: "., The position of the first 12 to 18 months can survive the credit market crisis, minority shareholders may sound hollow and security will be eroded," the world "strong" low "to sell."

At the same time, Waters of Mars, the stock to "buy" rating, keeping its website said: "The world's capital of at least S $ 3 billion was to reconsider our position."
"If we are right, this funding is nothing but an expression of confidence. Would be a good sign if your bank to ask shareholders to lend you more money," Muddy Waters claimed, adding that it was about-turn from earlier Olam chief executive Sunny Verghese in position that his company will not click on the markets, at least five months.

Mr. Verghese said Monday that last step Olam has demonstrated its continued ability to access both equity and debt capital in the current market. The money will be used to reduce existing debt and as working capital rather than to finance capital expenditure, he added.

Mr. Verghese also rejected a proposal to pay for Muddy Waters rating of its shares on the grounds that it is adequate access to all the necessary financing through the capital markets, and do not think that the cost of borrowing will be reduced if he did so.

He said that Olam was almost S $ 10 billion in liquid or near liquid assets it. It also has S $ 5,8 billion in debt from S $ 2,89 billion in bonds.

In addition, he sought to put Muddy Water episode behind him, saying he was not going to keep an eye for an eye exchange and that "we must return to the business management company."

But Muddy Waters, arguing that the champion of retail investors, says: "It is seldom fair game for retail investors, and we think that Olam attempt to impose a debt rating by retail investors is another example of disease that bothers capital today's markets. "