Get Instant Loan up to ₹10 Lakh!
Adani hires legal firm Wachtell to take on short-seller Hindenberg: Report
- The move comes after US-based Hindenburg Research alleged that Gautam Adani and group companies are fraud.
Gautam Adani-led conglomerate has hired US legal firm Wachtell in short-seller battle against US-based Hindenburg Research, reported Financial Times. The law firm is known to be fierce at activism defence.
“In recent days, the Adani Group has tapped senior lawyers at New York’s Wachtell, Lipton, Rosen & Katz to advise it on how to stem the crisis facing the Indian conglomerate since Hindenburg accused it of accounting fraud and stock market manipulation in late January,” the FT report said quoting four sources.
Adani group company stocks have been volatile since the US-based research firm levelled allegations against Adani group in a report on January 25. The conglomerate has been in a firefighting mode since that day, resulting in withdrawal of it's much-awaited ₹20,000-crore FPO. Since then, the group has even paid off some of its debt against pledged shares.
Read all Adani-related stories here
It has taken multiple measures to calm the investors and assure them of the good financial health of the group companies.
The share price of Adani Enterprises opened lower on February 10, but recovered on the back of this news, to rise ₹24.90, or 1.29%, to ₹1,952.20, at the time of writing this copy.
The Adani group reached out to the US-based law firm, Wachtell, through its legal partner fiirm, Cyril Amarchand Mangaldas.
Mint could not independently confirm the developments.
“Wachtell will predominantly focus on co-ordinating legal, regulatory and public relations for the group, whose market value has collapsed by more than $100bn since Hindenburg published its paper alleging fraud,” said the FT report.
Wachtell, Lipton, Rosen & Katz also represented Elon Musk for the $44-billion dollar takeover of Twitter, according to information on Wikipedia.
MSCI today cut the free-float designations of four stocks of Adani group - Adani Enterprises, Adani Total Gas, Adani Transmission and ACC. This could impact their index weightings, some experts warned.
Wachtell is known for fighting out complex corporate cases and considered as one of the expensive law firms in the US.
Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
MoreLess
First Published:10 Feb 2023, 10:56 AM IST
- Top Gainers
- Top Losers
- 52 Week High