Muddy Waters LLC., a research firm owned by short-seller Carson Block, said Friday that it wasn’t acting in concert with hedge funds to drive shares of Olam International lower and defended its research that criticised the commodity supplier’s business and accounting practices.
“We are not working in concert with a group of hedge funds to try to drive the stock price down. Olam has become among the most heavily shorted stocks in Asia on its own [lack of] merit,” Muddy Waters said in a note on its website.
Sunny Verghese, Olam’s chief executive, had accused Muddy Waters of working with some hedge funds to short the company’s stock. Olam executives weren’t immediately available for a comment.
Olam’s shares have declined more than 11% since Block first commented on the company at a conference in London Nov 19. At 2:08 p.m. on Friday, shares were flat at $1.56 while the benchmark Straits Times Index was up 1.05%.
Muddy Waters on Friday offered to pay Olam to get its bonds rated by Standard & Poor’s. Verghese said Wednesday that the company has no current plans to get its bonds rated.
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