(Reuters) – U.S. billionaire investor Bill Ackman said on Thursday that he had found a report from short-seller Hindenberg Research. Indian Adani Group “Very reliable and very well researched.”
Shares of seven of Adani’s listed group companies lost $10.73 billion in market capitalization in India on Wednesday after a US short sale. published the reportaccused the conglomerate of inappropriate use of offshore tax havens.
Hindenburg’s report also said it has short positions in Adani Group through bonds traded in the US and derivative products not traded in India.
The Adani Group said it was evaluating “corrective and punitive action” against Hindenburg, saying the report was “viciously mischievous and (and) uninvestigated.”
Shortly after, Hindenburg said that if the Adani Group were to file a lawsuit in the United States, it would request documents during its legal discovery process.
“Adamani’s response to Hindenburg is the same as Herbalife’s response to the first 350-page presentation. Herbalife remains a pyramid scheme. Okay,” Pershing Square boss Ackman said in a tweet on Thursday.
“We have not made any long-term or short-term investments in Adani companies or Herbalife, nor have we conducted any independent research,” he added.
Ackman had bet $1 billion on Herbalife since 2012, accusing Herbalife of violating China’s direct sales laws and being a pyramid scheme.
He let go of his short stint at Herbalife in 2018, a bet that went wrong, and the stock of the weight management and nutrition company soared more than 150%.
Adani Group did not immediately respond to Reuters’ request for comment.
Reported by Akriti Sharma, Bangalore. Edited by Dhanya Ann Thoppil
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