After saying it was putting on hold its acquisition activities during its recent results briefing, Olam surprised the market with the announcement of a US dehydration plant acquisition on Thursday. The acquisition is expected to increase its spice and dehydrate product offerings. Although the acquisition is relatively small, management's sudden turnaround is likely to cause some unease given still-tight credit conditions and the bleak global outlook. Management also completed a convertible bond buyback which will result in a US$41.2m one-off gain in the current quarter. Our EPS estimates remain largely unchanged. We remain concerned by the challenging operating environment. Our target price remains S$0.97, based on 6.4x CY10 P/E. Maintain Underperform.