Dec. 4 (Bloomberg) -- Olam International Ltd.’s planned $1.25 billion raising will only postpone the likely collapse of the commodity trader, according to Muddy Waters LLC, the research firm led by short-seller Carson Block.
The sale of a record $750 million in bonds and as much as $500 million of warrants announced yesterday “validates our thesis that Olam is in danger of failing,” Muddy Waters said today in a response to the raising that’s backed by Temasek Holdings Pte, Singapore’s state investment company.
The capital raising was also a “180-degree reversal” of Olam’s earlier position on not raising more debt in the near future, Muddy Waters said. Full story
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