"We will pay for Olam's debt to be rated": Muddy Waters

There really is no stopping them.

According to Muddy Waters' statement, "Olam’s response to our November 27th report is remarkable in that, despite being 45 pages long, it fastidiously avoids addressing the vast majority of our points."

Here's what else Muddy Waters said:

The response is essentially a waste of toner, as much of it consists of canned presentation slides and consultant drivel. Where Olam’s response attempts to be substantive, it contains numerous instances of irrelevant information, factual inaccuracies, misleading statements, and mischaracterizations of our report.

However, the response does demonstrate Olam’s continuing deluded denial of its fiscal problems. It seems the Titanic is still heading full steam toward the iceberg.

Given that Olam has thus far refused to have it or its debt rated, Muddy Waters finds quixotic its citation of Standard & Poor’s debt research in support of its purported liquidity.

Muddy Waters does not believe that Olam should have it both ways. Olam’s public debt should be rated. Muddy Waters hereby offers to pay for one series of straight debt to be rated by S&P.

Olam’s investors will benefit from the substantially increased transparency this rating will provide. In our view, it is Olam’s duty to have its unsecured debt rated because it has reacted our criticisms by increasing its CapEx spending forecast, and thereby increased its risk profile.

Olam now has no good reason to avoid having its debt rated. Should it continue to refuse a rating, investors should wonder whether the Company is worried that a rating would mortally wound it by making clear that the market has been underpricing its risk.

Olam may accept our offer at any time before December 5, 2012 at 17:00 Singapore time by emailing: [email protected], or by issuing a press release stating that it accepts our offer.