Olam shares open lower after it rejects Muddy Waters allegations

SINGAPORE - Shares of Olam International Ltd opened 5 percent lower, hitting a 3 1/2 year low, as it launched a defence of its business and acquisition strategies in response to allegations by short-seller Muddy Waters, which said that the firm may fail.

At 0252 GMT, Olam shares had recouped some of their early losses and were trading at S$1.545, down 0.96 percent. They hit a intraday low of S$1.465, their weakest level since March 2009.

Olam dismissed allegations by Muddy Waters, which attacked the Singapore commodity trader's acquisitions and accounting, and said on Wednesday it faces no risk of insolvency.