LONDON (Bloomberg) — Golden Ocean Group Ltd., the shipping line controlled by Norwegian investor John Fredriksen, gained in Oslo trading on speculation brokerages will boost recommendations after a purchase of the company's bonds.

Golden Ocean rose as much as 37 percent. Investment bank Carnegie ASA yesterday increased its recommendation to "outperform" from "neutral" after Fredriksen, the company's largest shareholder, paid at least $40 million for an issue of convertible bonds last week at 30 percent of their face value.

"More analysts are turning around and coming towards a successful restructuring of Golden Ocean," Bjorn Knutsen, an analyst at First Securities ASA, said by phone. The risk of owning the stock was "considerably reduced" after Fredriksen bought the company's bonds last week, he said.

Golden Ocean rose as much as 1.02 kroner to 3.75 kroner and traded at 3.65 kroner by 5 p.m. in Oslo, valuing the Hamilton, Bermuda-based company at 1 billion kroner ($140 million). The company warned last month it was running out of cash.

"Golden Ocean seems closer to reaching a restructuring deal," Oslo-based Carnegie analyst Lars Kalbakken wrote. "In addition, the default risk has been reduced assuming removal of the broken covenant on the convertible bond."