Eurofins Scientific collapses on the stock market, a star short seller on the offensive

Eurofins Scientific collapses on the stock market, a star short seller on the offensive
Eurofins Scientific collapses on the stock market, a star short seller on the offensive


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– Eurofins Scientific shares were suspended on the Paris Stock Exchange on Monday.

The action of Eurofins Scientific, a pharmaceutical, food and materials analysis company, was suspended on Monday at Paris stock exchange, after falling more than 15% in the wake of a press release from the fund specializing in short selling Muddy Waters criticizing the group. Eurofins trading was suspended around 9:30 a.m., while the company fell 15.05% to 44.80 euros. “The confusion” et “the contradictions inherent in its finances and operations” make the company “optimized for embezzlement”writes Muddy Waters in a press release made public just after the opening of the Paris Stock Exchange.

Muddy Waters denounces “opacity” company accounts. “As Eurofins grows, it makes smaller acquisitions (…). The vast majority of acquisitions do not meet the disclosure threshold, which keeps most spending opaque.. “Despite being a seemingly mature business, Eurofins has raised and consumed billions of dollars in recent years, ostensibly to fund its growth”vilipende Muddy Waters.

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An action divided by three

Eurofins has experienced difficult recent years on the stock market: while the price had risen to more than 120 euros in 2021, allowing it to integrate the flagship CAC 40 index, its action has now been divided by three. The American fund Muddy Waters is one of the most influential short-selling funds in the world, meaning it invests by betting on the fall in the price of certain companies. He was notably the first to criticize the management of the large distribution group Casino in 2015, but also attacked the subcontractor for telecoms and energy operators Solutions 30 in 2021.

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