http://www.businessinsider.com/how-c...gapore-2012-12
Business Insider asked Carson Block if Muddy Waters was worried about the government's active involvement in Temasek's holdings.
"We are not concerned by the prospect of a continuing bailout of Olam," Block responded. "Such support would either add to a debt load that we believe is already fatal, or substantially dilute the shares. At the heart of Olam is a sick core business and substantial amounts of already squandered capital investment. We do not see Olam ever becoming a bailout success story."
Perhaps not, but that doesn't mean that the Lees won't start a war of attrition. Balding conjectured that Block may be able to win, however, if other hedge fund managers take up the short, find other Temasek companies to short, or start attacking the Singapore dollar.
"If you just look at these companies, if you look into their finances they're fine," said Balding, "but because a lot of this is on the public books it will be interesting to see if people go after the Singapore dollar... if there's a run its probably going to be on the currency."
Olam's bond offering is set to take place in early January. Until then, we'll be watching the Lees, the stock, and Temasek Holdings with much anticipation.
http://www.businessinsider.com/how-carson-block-can-take-on-singapore-2012-12