mar. 24, 2008 call between raj rajaratnam and anil kumar

8/7/2019 Mar. 24, 2008 Call Between Raj Rajaratnam and Anil Kumar

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1 DATE:23 TIME:45 WIRETAP:67 CALL FROM:89 CALL TO:1011 OTHER12 PARTICIPANTS:1314 KEY:151617181920 RAJRAJARATNAM:21222324 ANIL KUMAR:2526 RAJRAJARATNAM:2728 ANIL KUMAR:2930 RAJ RAJARATNAM:3132 ANIL KUMAR:333435 RAJ RAJARATNAM:3637 ANIL KUMAR:3839 RAJ RAJARA TNAM:404142 ANIL KUMAR:43

March 24, 20086:48 PMOVER 917-907-2350ANILKUMARRAJ RAJARATNAM (917-907-2350)

UNIDENTIFIED FEMALEUnintelligible: UIInaudible: IA.Phonetic Spelling: PHVoice Overlap: II

.GOVERNMENT(:XHI~IT .. S06-T. S 2 0 9. C r.I I8 4( Ji.iH ) .

Hello?[Background noise]Hey Raj, Anil.Hey Anil, how are you?

Good. I'm in Tokyo.Uh huh.Uh ... you know the Chinese, uh ... you know, PC manufacturer thatbought uh ... IBM, right? (UI) ... IILenovo?Yeah.Yeah, yeah.

They are very, very far in discussion with Fujitsu

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I RAJ RAJARA TNAM:23 ANIL KUMAR:45 RAJ RAJARA TNAM:67 ANIL KUMAR:89 RAJ RAJARA TNAM:1011 ANIL KUMAR:121314 RAJ RAJARA TNAM:1516 ANIL KUMAR:171819 RAJ RAJARATNAM:2021 ANIL KUMAR:2223 RAJ RAJARA TNAM:242526 ANIL KUMAR:2728 RAJ RAJARA TNAM:2930 ANIL KUMAR:3132 RAJ RAJARA TNAM:3334 ANIL KUMAR:3536 RAJRAJARATNAM:373839 ANIL KUMAR:40414243

Uh-huh.To buy their, uh ... PC business.O.K.So . .. uh ... it's not a dead certainty yet, because ... 1 /Yes....you know to get uh ... a Japanese company to spin out a companyand urn ... business and sell it is like an act of God.Right.But. .. but they are uh ... certainly quite advance in the uh ...dialogue. We're doing some confidential work.Yeah. Huh. Anil, uhm ... I bought this Hindustan thing.Yeah.At least I asked the trader to buy it; I don't know how much hebought yesterday.Yeah, yeah, yeah.It's at 94 ... It's at 94.Yeah, 125 is the price.Right, so that's a certainty, right?Yeah.So everyday I'll accumulate a little bit whatever I can, in themarket. II

And you know, I told you about that company that now went uh ...the private equity guys bought it for 40 percent premium. I reallyhope you bought their shares; it was called Tetio Inito (PH). If youremember I had ... I was doing ... 1 /

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1 RAJ RAJARA TNAM: Yeah,23 ANILKUMAR: ,,,some work for BPO company that was looking for it to buy it II45 RAJ RAJARA TNAM: (UI), Yeah, uh .., yeah, the (UI) ,67 ANILKUMAR: Yeah, yeah, yeah, yeah, So they got a 40 percent premium bid8 from uh.; Nordic Capital.910 RAJ RAJARATNAM: O,K, Yeah, I know you told me .., II1112 ANILKUMAR: Anyway.1314 RAJ RAJARA TNAM: ...1remember that, yeah. You said ... II1516 ANILKUMAR: Yeah.1718 RAJRAJARATNAM: ...to do some work on it, yeah. II1920 ANILKUMAR: Yeah.2122 RAJ RAJARATNAM: Are you going to India from here?2324 ANILKUMAR: Yeah. Uh ... well, I'm going to Singapore on Monday.2526 RAJ RAJARA TNAM: Okay2728 ANILKUMAR: And then I'm there till Thursday, and then I was presuming, based29 on your plan, we'd fly on Thursday together.3031 RAJ RAJARA TNAM: Yeah, I am not sure whether I'm going to go to ... given what the32 markets are doing, you know.3334 ANILKUMAR: Hmm.Hmm.3536 RAJ RAJARA TNAM: Uh ... I am not sure whether I'm going to Asia right now, because ...37 II3839 ANILKUMAR: OK.4041 RAJ RAJARA TNAM: ...uh, you know, it's just crazy and I just need to be here, right?4243 ANILKUMAR: I didn't check on what happened today, Was it down again?

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12 RAJ RAJARA TNAM:34 ANIL KUMAR:56 RAJ RAJARATNAM:78 UNIDENTIFIED9 FEMALE:1011 RAJRAJARATNAM:1213 ANIL KUMAR:1415 RAJ RAJARATNAM:161718 ANIL KUMAR:1920 RAJRAJARATNAM:2122 ANIL KUMAR:2324 RAJ RAJARATNAM:252627 ANIL KUMAR:2829 RAJ RAJARA TNAM:3031 ANIL KUMAR:3233 RAJ RAJARATNAM:3435 ANIL KUMAR:363738 RAJRAJARATNAM:3940 ANIL KUMAR:414243 RAJ RAJARATNAM:

No, no, today the markets went crazy, uhm ...Oh.but, urn... [Aside: I'llhave a diet Coke.]

Diet Coke[Aside: Yeah. CUI).] IIIt's just very volatile.Yeah, the thing is, you know, Friday ...Imean, when markets aredown ... IIHmm....you try to protect and all that, right?Right, right. And then you ...(UI). Um ... is everything going O.K. with the, uh... processorcompany?Uh... no. So I had to tell you that.Uhhuh.Uh 11 to 15 percent reduction in revenues ...O.K....uhm ... which they feel, you know ... you know, obviously itmeans they're going to completely be bleeding.Right.Uh ... they think uh ... uh... their competitor is going to be betweenseven and nine percent down. But... IIUh-huh.

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12 AN1LKUMAR:3456 RAJ RAJARA TNAM:78 ANILKUMAR:9

1011 RAJ RAJARATNAM:1213 ANILKUMAR:1415 RAJ RAJARA TNAM:1617 AN1LKUMAR:1819 RAJ RAJARA TNAM:2021 ANILKUMAR:222324 RAJ RAJARATNAM:2526 ANILKUMAR:2728 RAJ RAJARA TNAM:2930 ANILKUMAR:3132 RAJ RAJARATNAM:3334 AN1LKUMAR:3536 RAJ RAJARA TNAM:3738 ANILKUMAR:3940 RAJ RAJARATNAM:4142 ANILKUMAR:43

...you know, h-... how do they know what their competitor isgonna do. But they said compara- ... comparatively, they're goingto look worse, right? Because ...Right...whilst both are down they're going to be another five percentfurther down, right?Right. They're gonna (U1)... IIUh ... he didn't give me the actual profitability uh figure.Right.Uh... so... uh...No, but the investment's still going through?Uh ... Oh that investment will proceed ...Imean, we are not surewhat's happening, but it's proceeding.O.K.But, uh... there's ... it's nothing that has prevented it right now.

Right. O.K. IIC U I )Apparently they're losing ... SOlTY?Sorry, this taxi driver doesn't know where he's going.(Chuckles) O.K.I mean. And uh...Tokyo. (UJ)?(UI) in the middle of Tokyo. Uh ... Uh... Yeah. s d . . . (Clears throat)so...L. The ... the investment looks like it's going ahead.

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12 RAJ RAJARA TNAM:34 ANIL KUMAR:56 RAJ RAJARATNAM:78 ANIL KUMAR:9

1011 RAJRAJARATNAM:121314 ANIL KUMAR:1516 RAJRAJARATNAM:1718 ANILKUMAR:1920 RAJ RAJARATNAM:2122 ANIL KUMAR:232425 RAJRAJARATNAM:262728 ANIL KUMAR:293031 RAJ RAJARATNAM:3233 ANIL KUMAR:3435 RAJ RAJARATNAM:3637 ANIL KUMAR:383940 RAJ RAJARATNAM:4142

O.K. But you think it will be done with the announcement?Uh... not very soon.O.K. IISo, the way it's working right now is, uhm ... the... by not verysoon, I mean it could take two more months. It's not like weeks. IIOh my god. Right. Right. Right.

And in between they're gonna declare a completely shitty uh ...Quarter....quarter. So that's ...Right, right.So that's the part that's very, uh, frustrating because, you know,what does that all mean for, even the transaction right? For them?Right. So, I think if the market goes up what we have in that uh. ..fund, I will sell it.Ifthe market goes up you sell it because we can fine tune thetransactions a lot. .. IIRight....better than anyone else can, right?Right, right, right. IIIt's ... It's like on the Fujitsu-Lenovo deal I can't tell you exactlywhich week or day it will happen right?Yeah but, yeah. I don't know how to play that, right? Because oneis the conglomerate and, you know.

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1 ANILKUMAR:234 RAJ RAJARA TNAM:56 ANILKUMAR:78 RAJ RAJARA TNAM:9

10 ANILKUMAR:111213 RAJ RAJARA TNAM:1415 ANILKUMAR:1617 RAJ RAJARA TNAM:1819 ANILKUMAR:20212223 RAJ RAJARA TNAM:2425 ANILKUMAR:26272829303132 RAJ RAJARATNAM:3334 ANILKUMAR:35363738 RAJ RAJARATNAM:3940 ANILKUMAR:414243

No but Lenovo ... So I'll tell you how to play, it's very straightforward, Currently, as people are tightening the IT belt... IIRight....they're all looking for better deals ... IIRight...Lenovo will be the winner in that, because obviously Dell andHP have a tougher time ... IIRight....to match the economics cost structure. IIUh-huh.Just to give you an example, McKinsey did a complete analysisand rehauled who ... who we are going to buy from, and all ourPC's or laptops had been bought by Leno- ... from Lenovo.Right.O.K.? So, I think in a tightening environment, Lenovo will be thebeneficiary, and then when they wind up suddenly actuallyconsolidating for scale and getting this market, people will bepositive. Now, you know, you're right, somehow markets mayalso say, "God, they've got this big bear of a cost structure now,because they've got this big fat high cost Japanese company." IIRight...uhm ... but, in general, it's ... or... or you wait a little and I'll giveyou a little better ideas as to how that whole thing is, you know,proceeding. Yeah ... IIO.K.But there's good ...generally good news for Lenovo. On theprocessor guys uh...I think if the markets go up, take out theposition and ... II

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1 RAJ RAJARATNAM:23 ANILKUMAR:45 RAJ RAJARA TNAM:67 ANILKUMAR:89 RAJ RAJARA TNAM:1011 ANILKUMAR:1213 RAJ RAJARANTNAM:1415 ANILKUMAR:1617

Right....and then we stay very finely tuned on how the developments are.Yeah.O.K.Yeah?O.K.All right.Thank you, Anil , Thank you.O.K. Bye[END OF CALL]

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mar. 24, 2008 call between raj rajaratnam and anil kumar

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