Gautam Adani and Haifa Port (Wikipedia photo, Flash 90/ Shir Torem, pexels)
The Adani Group concern from India, of the third richest man in the world Gautam Adani, the new buyer of Haifa Port, is preparing for a possible legal war with Hindenburg Research, claiming that Hindenburg’s “blatant and untrue” report “had a negative effect” on the company’s shareholders and caused “damages” Unwelcome to Indian citizens.”
The group further explained: “We are deeply troubled by this deliberate and reckless attempt by a foreign party to mislead the investor community and the general public,” Adani’s chief legal officer Jatin Jalundawala said in a statement on Thursday. “We are examining the relevant provisions under US and Indian laws for corrective and punitive actions against the Hindenburg study.”
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Hindenburg claimed to have uncovered evidence that Adani – Asia’s richest man – “engaged in brazen stock manipulation and accounting fraud over decades”. Companies affiliated with Adani lost a combined $12 billion in market value after Hindenburg published its allegations.
The ministry said that Adani, his family members and other associates use a network of straw companies located in tax havens across Mauritius, the United Arab Emirates and the Caribbean. Hindenburg immediately seized a lawsuit and explained: “In the 36 hours that have passed since we published our report, Adani has not addressed any of the substantive issues we raised,” Hindenburg said. “Instead, as expected, Adani resorted to attacks and threats.”
“Regarding the company’s threats of legal proceedings, let’s be clear, we will be happy about it. We fully stand by our report and believe that any legal action taken against us will be pointless,” Hindburg added. “If Adani is serious, he should also file a lawsuit in the US where We are working. We have a long list of documents that we would require in a legal discovery procedure.”
Adani’s personal fortune has fallen by about $6 billion to $113 billion since Hindenburg released his report, according to the Bloomberg Billionaires Index. Adani, 60, also dropped one place on the list of the world’s richest people and now trails Barnard Arno, Elon Musk and Jeff Bezos.
“Even if you ignore the findings of our investigation and take Adani Group’s financials at face value, its top 7 listed companies are down 85% just on a fundamental basis because of sky-high valuations,” Hindenburg said.
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