DJ MARKET TALK: Genting S'pore Rts Would Weigh On Parent -AmRes

0401 GMT [Dow Jones] STOCK CALL: Planned rights issue by Genting Singapore (G13.SG) is puzzling as company has sufficient funds, with end-June loan drawdown by Resorts World at Sentosa S$1.7 billion out of S$4.2 billion, AmResearch analyst Gan Huey Ling says; suspects RWS development cost may have exceeded budgeted cost, believes rights-issue proceeds could be channeled to Western Zone construction. Says 20% discount to S$1.19 closing price implies rights issue price of S$0.952, assuming raising S$1 billion, would mark 1-for-9 rights issue. People familiar with situation tell Dow Jones GENS plans to raise US$1 billion in rights issue. Says Genting Bhd (3182.KU), which owns 54% GENS stake, would have to pay MYR1.3 billion or S$550.3 million for its entitlement. Notes at end-FY08, Genting Bhd.'s company level net cash at MYR310 million, while 48.5%-owned Genting Malaysia's (4715.KU) at MYR5.1 billion at end-June; indicates if Genting Bhd. were to subscribe, might need to borrow or rely on dividend increase from Genting Malaysia or Genting Plantations (2291.KU). Keeps Buy on Genting Bhd., GENS, Genting Malaysia, puts Genting Bhd., GENS fair values under review.(LES)