Saturday, 26 July 2014
Last updated 11 hours ago
Jun 20 2011 | 12:02pm ET
Paulson & Co.'s investment in Chinese timber company Sino-Forest Corp. piled up fresh paper losses after a newspaper backed one claim made by a hedge fund that is shorting the company.
Canada's Globe & Mail reported on Saturday that Sino-Forest had overstated its holdings in China's Yunnan Province. According to the newspaper, there are "inconsistencies," and one plantation that Sino-Forest owns the right to is smaller than the 494,000 acres Sino-Forest claims.
The Globe cited a provincial forestry official and the chairman of a company that sold some of the Yunnan land to Sino-Forest.
The report sent Sino-Forest shares in Toronto swooning once more—the company's stock had bounced back some after it issued a vigorous rebuttal of the research report by Muddy Waters that first sent it into a tailspin. Shares are down 13% today and 85% since the Muddy Waters report, leaving Paulson with losses in excess of US$500 million.
In a statement, Sino-Forest denied the Globe's allegations, calling the newspaper's article an "incorrect portrayal of its business" containing "factual misunderstandings regarding the company's ownership of trees in Yunnan."
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…