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This MailBag item is obviously in response to an earlier blog titled: 'Goldman Sachs buys 37.8m DiGi shares, giving it 5.34% stake'.

Mailbag
From: Little Bird on Industry Roof
To: Jeff Ooi
Date: Apr 21, 2006 12:55 AM
Subject: Goldman Sachs in bed with DiGi?

what do you think about the sachs stake in DiGi? i am thinking sachs is always a proxy for somebody and always acts for somebody.

if that datuk was refused the 12 %, this 5.34% and will slowly buy again from the market so the substantially amount will come up to 12%. then the datuk and the gang will get their stake and further when Telenor is forced to divest their interest, these hawks will swoop in.

or another way i figure is happening is, sachs is acting on behalf of Telenor. When they're forced to par down their stake to 49%, sachs will act as their proxy. 5.34% will already enable board representation. With 49% Telenor and sachs acting as proxy 5.34%, you make the sum.

or, Telenor is divesting their interest right now. And they're using sachs as a vehicle to par down their stake by pushing up the stock price since sachs bought up 5.34%. Up around more than RM1 per stock price Telenor bought previously at around RM8+. that will take into account more than RM2 billion in market capitalisation and worth of DiGi. Not to mention now there are 2 capital repayments of 1st @ 70 cents and second @ 60 cents with the 1st repayment coming with a 20 cents dividend. correct me if i am wrong on the figures.

whatever it is, sachs always buys in for a reason. most of the time as proxy. for what reason this time, i don't think i am sure.