UBS downgraded Olam International Ltd to 'sell' from 'buy' and cut its target price to S$1.33 from S$2.95, citing uncertainties around the cost of its Gabon project.
Olam shares were down 0.3 percent at S$1.60 by 0100 GMT, around 8 percent below the level they were at before short-seller Muddy Waters launched an attack on the commodities trading company for its accounting practices and aggressive acquisitions.
UBS said the World Bank now estimates the total cost of the Gabon project to be at $1.5 billion to $2 billion, compared with Olam's initial estimate of S$1.3 billion. Full story
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