Making rich folks richer.
The United States Agency for International Development (USAID) and Royal DSM, the global life sciences company based in the Netherlands, announced a partnership to improve nutrition in the developing world through better micronutrients.
The two organizations signed an agreement at the World Economic Forum in Davos, Switzerland last week-end. Where else but Davos, among the billionaires should these world-molders sign?
USAID and Royal DSM will first focus on “rice fortification,” whatever that may be.
USAID Administrator Rajiv Shah announced to the crowd with great pomp and circumstance, “We are witnessing an unparalleled opportunity right now for innovative, large-scale private sector partnerships to achieve significant impact on global hunger and nutrition. USAID is proud to build this new partnership with DSM, the world’s largest manufacturer of micronutrients and vitamins. Together we can improve childhood nutrition in countries that depend on rice as a staple crop.”
Yes, rice for the poor! And a higher share price for Royal DSM!
But wait, back on June 01, 2010, Orascom Construction Industries (OCI) had acquired Royal DSM’s Agro businesses.
So, if Royal DSM is out of the Agro business, why is USAID anointing them to engage in rice fortification?
Shouldn’t USAID be dealing with Orascom? And who is Orascom? All we can tell you is that their headquarters is located in Cairo, Egypt, at the Nile City Towers on 2005A Corniche El Nil Street. That’s nice.
For all his good deeds, Royal DSM CEO, Feike Sijbesma, received the prestigious 2010 Humanitarian of the Year Award from the United Nations Association of New York for Royal DSM’s partnership with the United Nations World Food Programme.
But wait, on the dark side an insider trading case was filed by the US Security and Exchange Commission (Case No. 10 Civ. 9527 just filed on Dec. 22, 2010) against “unknown purchasers,” and Royal DSM is involved. (The SEC does not like to release the names and embarrass important people.)
The case centers on insider trading immediately prior to the announcement that Royal DSM would buy all the outstanding shares of Maryland based Martek Biosciences Corporation-at a 35% premium over the market price.
According to the SEC, between December 10, 2010 and December 15, 2010, 2,616 Martek call options were purchased through a UBS account. These purchases represented over 90% of the volume for those contract days. Wow! Following the acquisition announcement the share price increased by 36%. Double-Wow!! This placed the “anonymous insider” in a position to realize enormous profits. Really?
Someone at Royal DSM had to be involved in this insider trading.
Where are we going with this twisted tale of the super privileged? Nowhere, other than to show you how the other folks live. How the corporate insiders, government officials, U.S. Senators, and possibly even the folks at USAID can turn a buck.