Shares in luggage maker Samsonite continue to slump despite labelling short seller’s report ‘misleading’
Hong Kong-listed stock loses more than 11 per cent of its value in first four minutes of trading
Shares in Samsonite International, the world’s largest branded luggage maker, have slumped more than 11 per cent after trading in its Hong Kong listed shares resumed trading on Friday morning, extending its losing streak from Thursday after Texas short seller Blue Orca accused the company of “questionable accounting practises” and “poor corporate governance”.
Shares in the Mansfield, Massachusetts-based firm, lost 11 per cent in their first four minutes of trading, ending the day down 12.05 per cent at HK$27.00.
On Thursday they also shed nearly 12 per cent to HK$30.7 before the luggage maker had to halt trading.
Newly formed activist short seller Blue Orca said the company should be trading 48 per cent below its last traded price to HK$17.59 on Thursday, accusing the company of concealing slowing growth through debt-fuelled acquisitions and that it has “massaged earnings and inflated margins”.
In a filing to the Hong Kong stock exchange late on Thursday, Samsonite said the allegations are “one-sided” and “misleading” and that the conclusions drawn in Blue Orca’s report are “incorrect”.
The company also showed full support for CEO Ramesh Tainwala, in a separate statement.
