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Olam shares halted from trading after report questions its practices

Published on Nov 20, 2012 10:59 AM

Olam shares were halted from trading this morning after a report by US research firm Muddy Waters questioned its accounting practices.

Bloomberg reported that Muddy Waters' founder Carson Block said that he was betting against the shares. Olam's chief executive Sunny Verghese was quoted by Bloomberg as saying: "I have absolutely no idea what he is talking about."

Muddy Waters has built a reputation for getting its calls right on China firms with questionable accounting practices such as Sino-Forest.

Olam last week reported a 26 per cent increase in first quarter profits. Its shares had closed 1.5 cents lower at $1.74 yesterday.