Adanis response to Hindenburg Research is the same as Herbalifes response to our original 350-page presentation, Ackman said, referring to his ill-fated short-selling campaign that lasted more than five years against the weight-loss shakes seller before he exited his position in Herbalife Nutrition Ltd. in 2018.
An Adani Group representative did not immediately respond to an emailed request for comments on the Ackman Twitter post. Ackman said in a separate Twitter post that hes neither long or short in Adani firms nor has done any independent research.
Adani Group, led by billionaire Gautam Adani the worlds fourth-richest person said Thursday that it was exploring legal action against Hindenburg Research. The ports-to-power conglomerate also called the Jan. 24 report maliciously mischievous, bogus and unresearched.
Hindenburg, founded by Nate Anderson, published a report earlier this week saying it was shorting the Adani conglomerates US-traded bonds and non-Indian-traded derivative instruments. It accused the group of brazen market manipulation and accounting fraud.
The wide-ranging allegations of purported corporate malpractice spoke of a web of Adani-family controlled offshore shell entities in tax havens, from the Caribbean, Mauritius and the United Arab Emirates.
Hindenburg claims these were used to facilitate corruption, money laundering and taxpayer theft, while siphoning money from the groups listed companies. The comglomerate has businesses range from ports to power plants to airports, data centers, renewables, cement makers and media.
The drop in market value continued on Friday for the Adanis listed companies. The report was out on Wednesday an exceptionally sensitive day to be hit by a short seller attack since the flagship Adani Enterprises Ltd. opening a $2.5 billion share sale for institutional investors. The anchor book of the follow-on offer was oversubscribed.
The sale, which continues to be open for subscription through Jan. 31, is part of the tycoons attempt to seek global credibility for his rapidly-growing empire. Adani is also looking to woo Indias mom and pop investors to broaden his shareholder base. This would help silence critics who highlight his groups thinly-traded stocks and rising debt.
Highest Standards
The short seller attack on the Adani conglomerate shows the perils of going global for the self-made billionaire as he and his aides are increasingly held to the highest standards of corporate governance.
This level of scrutiny is also something Adani has largely managed to avoid in his home country, where he has mostly faced criticisms over high levels of leverage and political barbs for his perceived proximity to the Indian Prime Minister Narendra Modi.
None of the past challenges have curbed his meteoric rise. In Hindenburg a relatively small short seller but one with a history of taking down companies like electric vehicle maker Nikola Corp. Adani may have run into his toughest opponent so far.
Regarding the companys threats of legal action, to be clear, we welcome it, the research firm said in a Twitter post on Wednesday, adding that it was standing by its report. If Adani is serious, it should also file suit in the US where we operate. We have a long list of documents we would demand in the legal process.
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