By Nell Mackenzie and Akanksha Khushi
LONDON (Reuters) – The shares and bonds of CPI Group fell sharply on Tuesday after short-selling hedge fund Muddy Waters (NYSE:) mentioned it had wager towards the credit score of the Luxembourg-based business landlord.
In a report, the fund mentioned CPI PG’s controlling shareholder, Czech billionaire Radovan Vitek, had misstated the worth of the corporate. The report additionally mentioned some earnings had been booked towards actual property properties that have been the truth is empty plots of land.
The firm didn’t instantly reply to a request for remark.
CPI Group’s Frankfurt-listed shares have been final down 2.8% on the day, whereas the worth of its 2027 medium-term notice fell 3.5 cents on the day to 70.259, in line with information from Tradeweb.
Muddy Waters didn’t specify towards which bond it had taken a brief place and the corporate has a number of excellent notes listed..
CPI PG owns properties in Germany, the Czech Republic, Poland and elsewhere in Central Eastern Europe.
The report particulars 4 transactions totaling about 441 million euros ($481.00 million) wherein the report says the money and actual property accounts “could be misstated.”
The 4 transactions give attention to properties and firms modified palms amongst totally different house owners via holding corporations.
($1 = 0.9168 euros)