The Straits Times
Published on Nov 21, 2012

Olam's actions have been 'abject failure of leadership': Muddy Waters


Short-seller research firm Muddy Waters today said it stood by its criticisms of commodities trader Olam International.

In a statement put up on its website Muddy Waters said: "We do not work for an investment bank, and cannot be bullied the way other analysts can. Our research into Olam has been exhaustive, and we plan to resolutely stand by it regardless of any attempts you might make to discredit it or us."

The research house added that a previous report that questioned Olam's accounting methods "should have caused you to work toward repairing what ails your business and your balance sheet" but that Olam "did the exact opposite of what you should have done". "Your actions have been an abject failure of leadership."

Muddy Waters founder Carson Block, a closely followed market watcher, had said on Monday in London that he was short-selling Olam, saying it was heavily in debt and was booking profits before it was sure its deals would make money.