The Financial Post reports in its Friday edition Paladin Energy's ($1.15) move to raise $69.2-million through a private placement, possibly to help ward off hostile bidders, has at least one market-watcher scratching his head. The Post's Christine Dobby, writing in Trading Desk, says the Australian uranium producer completed the financing issuing 56.9 million shares at $1.22 each. "We are surprised Paladin would issue equity at such dilutive levels," said Bart Jaworski, an analyst at Raymond James. He wondered why the company would need the funds given what is known about its financial situation. Paladin recently drew down $127-million (U.S.) from its Kayelekera plant in Malawi. The company had $117-million (U.S.) cash on hand as of June 30, 2011, and no expected funding shortfalls or debt covenants in the near future. "We understand Paladin does not want to use the funds to pay down existing debt and wants to provide additional protection in the event of any hostile bids," the analyst said. Mr. Jaworski said the changes dropped his net asset value per share 8 per cent to $2.91 from $2.97. He revised downward his share price target to $2.40 from $3.40, but he kept his outperform rating.