NMC Rises 34% as It Plans Independent Review After Short Report - Bloomberg:
NMC Health Plc shares gained after the company said it plans an independent review of assertions from “certain third parties,” partly recovering from a slump that followed allegations by short seller Muddy Waters Capital LLC last week.
The company, which is based in the United Arab Emirates, has been under siege since Carson Block’s Muddy Waters said its financial statements hint at potential overpayment for assets, inflated cash balances and understated debt. The stock lost 47% last week after the report.
NMC said last week that those claims are unfounded, and also denied a Financial Times article saying it planned to raise 200 million euros ($222 million) of off-balance-sheet debt.
The Abu Dhabi-based company said on Monday that it believes the current share price is not an accurate reflection of the company’s value. The review, by an accounting firm, will be overseen by a committee made up of a majority of independent directors. The shares rose 34% in London on Monday, but are still down 33% since the short seller report.
NMC Health Plc shares gained after the company said it plans an independent review of assertions from “certain third parties,” partly recovering from a slump that followed allegations by short seller Muddy Waters Capital LLC last week.
The company, which is based in the United Arab Emirates, has been under siege since Carson Block’s Muddy Waters said its financial statements hint at potential overpayment for assets, inflated cash balances and understated debt. The stock lost 47% last week after the report.
NMC said last week that those claims are unfounded, and also denied a Financial Times article saying it planned to raise 200 million euros ($222 million) of off-balance-sheet debt.
The Abu Dhabi-based company said on Monday that it believes the current share price is not an accurate reflection of the company’s value. The review, by an accounting firm, will be overseen by a committee made up of a majority of independent directors. The shares rose 34% in London on Monday, but are still down 33% since the short seller report.
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