Singapore’s Olam sues US short-seller Muddy Waters

Olam International Ltd, Asia's largest agribusiness firm, has initiated a lawsuit against US short-seller Muddy Waters Research LLC and its founder Carson Block for certain adverse remarks on the company's financial reporting.

The legal action has been initiated in the high court of Singapore for the statements made by Block at the Sohn London investment conference in London earlier this week, Olam said in a statement yesterday.

Singapore-headquartered Olam is a leading global agricultural commodities supplier, and currently ranks among the largest 40 listed companies in Singapore. The company caters to around 12,300 customers across 65 countries with leading positions in many of its businesses including cocoa, coffee, cashew, sesame, rice, cotton and wood products.

For the financial year ended March 2012, the company reported revenue of $14 billion.

In his speech, Carson Block questioned the debt levels and accounting practices of Olam, saying that he was betting against the company.

Further to the comments, Olam shares plunged in the US market on Monday and in Singapore on the following day, although recovered later on Wednesday on strong positive reaction from the company.