Olam

Olam: According to market murmurs highlighted by BusinessTimes, Olam's share price surge prior to the privatisation offer last Friday may have been due to interest by other firms in acquiring the agri-commodities trader. Firms include Sime Darby and two Japanese trading companies that were interested for Olam's exposure to the African markets. Market observers do not expect a competing offer for Olam, given that the offer involves existing shareholders with a large stake. The news may spur further interests in the two other commodity players, both underpinned by separate positive drivers. Noble, on its potential joint venture or sale of its agriculture business, and Wilmar, supported by the strong CPO prices. Majority of the street recommends that investors accept the offer at $2.23, in view of the high premium.