UAE News: NMC Health's Shetty Sunk by Muddy Waters Attack - Bloomberg:
When discussing his business philosophy, Indian entrepreneur Bavaguthu Raghuram Shetty likes to stress the importance of embracing challenges — even those you fail to overcome. “Without mistakes you can’t learn,” the founder of hospital operator NMC Health Plc said in a YouTube video in January. “If I don’t have one problem in the office, it’s not a good day for me.”
By that measure, Shetty has been having a string of really good days lately. Since U.S. short seller Muddy Waters Capital LLC in December alleged fraud at NMC, the company has lost two-thirds of its value. Yesterday, shares of NMC, the largest private health-care company in the United Arab Emirates, were suspended and the company announced it was under investigation by the U.K. markets regulator.
In the last two weeks, five of 11 board members have either been fired or resigned amid a drip-drip-drip of financial improprieties. Shetty himself was out on Feb. 17 after the company said he may have misreported the size of his stake, calling into question who really holds control. Next month, when the FTSE 100 carries out its quarterly recalibration, NMC is almost certain to be dropped from the benchmark index of the biggest companies listed in London.
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