Galleon Fund's intensive competition with other similar hedge funds and John Keells Holdings' (JKH) poor earnings outlook is what made US based Galleon Fund manager Raj Rajaratnam sell Galleon's JKH stock to businessman Harry Jayawardena last Wednesday, some analysts said.
"Galleon sold about 31 million shares, which is approximately five percent of JKH. Mr. Rajaratnam has about nine percent more in his name,” one analyst said, adding that it is unlikely he will sell any of it, as it is a personal investment to him.
He said the interest income of JKH's Rs. 10 billion cash reserve is what is somewhat attractive in this company now but for the investors at Galleon it was not so. "They had to sell this,” he said. This Rs. 1.9 billion deal lifted the share market on Wednesday. |
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