Wednesday, November 28, 2012

Olam shares open lower after it rejects Muddy Waters allegations

Shares of Olam International opened 5% lower, hitting a 3 1/2 year low, as it launched a defence of its business and acquisition strategies in response to allegations by short-seller Muddy Waters, which said that the firm may fail.

At 10:52 a.m., Olam shares had recouped some of their early losses and were trading at $1.545, down 0.96 percent. They hit a intraday low of $1.465, their weakest level since March 2009.

Olam dismissed allegations by Muddy Waters, which attacked the Singapore commodity trader's acquisitions and accounting, and said on Wednesday it faces no risk of insolvency.

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