Tuesday, December 4, 2012

Muddy Waters: Olam’s Biggest Bond Sale Only Delays Collapse




From Bloomberg: Olam International Ltd. (OLAM)’s planned $1.25 billion raising will only postpone the likely collapse of the commodity trader, according to Muddy Waters LLC, the research firm led by short-seller Carson Block.

The sale of a record $750 million in bonds and as much as $500 million of warrants announced yesterday “validates our thesis that Olam is in danger of failing,” Muddy Waters said today in a response to the raising that’s backed by Temasek Holdings Pte, Singapore’s state investment company.

Olam, the world’s second-largest rice trader, and Muddy Waters have engaged in a public war of words since Block, a 36- year-old former lawyer, said last month said he was selling Olam shares short….

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