Short-seller Carson Block’s charge that Olam International Ltd. will fail, his first attack on a Singapore company, is a victory for shareholders after it made the commodity trader more responsive to investors.
Olam International Ltd., the commodity trader that sued Muddy Waters LLC for defamation, said it’s reviewing all legal options, as its second-largest shareholder maintained its stake and two directors bought shares in the company.
Olam International Ltd. Chief Executive Officer Sunny Verghese dismissed claims from Muddy Waters LLC of potential insolvency by pointing to the commodity trader’s more than S$10 billion ($8.2 billion) of liquidity.
Evonik Industries AG, a German specialty chemicals maker, said its owners sold a 12 percent stake in the company to institutional investors, paving the way for a fourth attempt to sell shares to the public.
Olam International Ltd., the commodity trader targeted by Carson Block, dropped its defamation lawsuit against the short seller and his research firm Muddy Waters LLC, bowing to advice from shareholders to focus on its business.