Casino recently suffered a particularly critical publication from an American investment company, Muddy Waters. This revelation had a negative impact on the group’s share price, which soon dropped sharply. The AMF or Autorité des Marchés Financiers may be asked to arbitrate the situation. And Casino could even take the case to court.
Casino group attacked by an American investment company
It is Muddy Waters who provokes the anger of the Casino group’s leaders. Indeed, the latter issued a note that devalues the company: the publication states that the group’s share would be subject to significant overvaluation. The repercussions were not long in coming as the Casino stock immediately dropped (by 15%!). Note that before Muddy Water’s rating, Casino stock was in a bullish trend. The group also reacted promptly and indicated its intention to file a complaint with the AMF or Autorité des Marchés Financiers and to file a complaint against the American company.
A publication with harmful effects
Muddy Waters’ publication refers to the fact that Casino is one of the most overvalued companies in the world. It should be noted that this is not the first time that this American investment company has shared a strong view of the financial markets. She then states that, based on calculations made by her own, a Casino share will only be worth “6.91 euros”. As for the parent company’s, it would even be close to zero. In any case, the group would exploit financial engineering to hide its problems. Muddy Waters also believes that casino debt is very high. In its publication, it even states that Casino could be likened to a hedge fund with a high level of debt.
Faced with the publication of Muddy Waters, Casino did not take long to react. The group even refers to a “desire to harm” on the part of the investment company based in the United States. He considers that the information shared is misleading, not reflecting reality. Casino even claims that the AMF has been informed. And according to a statement from the group, it is possible that the case could go to court (criminal!).
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