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Olam's price surge should be investigated
Two large deals, two odd price movements before the deals were announced. Yes, I'm referring here to Olam International, which last week saw its shares shoot up 13 per cent in high volume before trading was suspended and an announcement released that Mitsubishi has bought a 20 per cent stake. Not surprisingly, I've received emails from unhappy observers who quite naturally have drawn parallels between this episode and a similar one many months ago when Temasek made a takeover offer. Back then Olam's shares crept up over an extended period before the offer was made and in response to the ensuing public outcry, SGX said there had been broker reports to explain the rise so no further probe was needed.
I wonder if it'll be different this time, or if the incident will be shelved and forgotten as the last one was.