Bill Ackman, a multibillionaire investor from the United States, stated on Thursday that he thought the report by short-seller Hindenburg Research on India’s Adani Group was “very credible and exceptionally well researched.”
Following the publication of the research by a U.S. short-seller accusing the conglomerate of unlawful use of offshore tax havens, shares of seven listed group companies of Adani saw a $10.73 billion decline in market value in India on Wednesday.
In its report, Hindenburg also claimed to have shorted Adani Group through its derivative securities traded outside of India and U.S.
Adani Group described the study as “maliciously nasty, (and) unresearched,” and stated that it is considering “remedial and punitive action” against Hindenburg.
Shortly after, Hindenburg declared that, should Adani Group initiate a case in the US, it will request papers as part of the legal discovery procedure.
“The same way Herbalife responded to our initial 350-page presentation, Adani responded to Hindenburg. Herbalife continues to be a Ponzi scheme. The Hindenburg study was really well-researched and I thought it to be quite believable “Ackman, the CEO of Pershing Square, stated in a tweet on Thursday.
He continued, “We have not conducted our own independent investigation, and we are neither long nor short in any of the Adani firms or Herbalife.
Beginning in 2012, Ackman wagered $1 billion against Herbalife on the grounds that it was a pyramid scam and in violation of Chinese direct-selling laws.
When his bets failed in 2018, he cut his short position in Herbalife at a loss, despite the company’s shares increasing by more than 150%.
A request for comment from Reuters was not immediately answered by the Adani Group.