Commodity trading giant Noble Group rejected a report by US short seller Muddy Waters questioning its finances and accused it of issuing an unreliable and misleading report without saying whether they will take legal action against the US company.
“We categorically reject their allegations as inaccurate, unreliable and misleading,” Noble, which is headquartered in Hong Kong, said in a rebuttal filed with the Singapore exchange.
Nonetheless, as of 9.30 AM, Noble was one of the top five losers on the Singapore Exchange, with its share price dropping by 2.91 per cent to 83.5 Singapore cents. On Thursday, Noble’s share price fell 5.5 per cent to 86 Singapore cents.
Muddy Waters published on Wednesday a report on Noble Group, saying it has taken a short position on the Singapore-listed company.
“Noble seems to exist solely to borrow and burn cash,” alleged Muddy Waters.
“We categorically reject the assertion that Noble exists to borrow and burn cash,” Noble replied.