Samsonite shares suspended again as company readies fresh response to short-seller attack
Luggage maker has already called accusations of questionable accounting by activist investor Blue Orca ‘misleading”, promises a further announcement
Shares in Samsonite, the world’s biggest luggage brand, were suspended from trading for a second time in Hong Kong on Monday, with the company saying it would make a further announcement in the wake of accusations by an activist investor last week.
US short-selling firm Blue Orca Capital had accused the company of questionable accounting practices and poor corporate governance in a report, triggering a near 12 per cent slide in the company’s share price last Thursday before the shares were briefly suspended.
The shares fell another 12 per cent when trading resumed on Friday, hitting a nine-month low of HK$26.80 and valuing Samsonite at US$4.8 billion.
The company said in a statement on Monday it had requested another halt “pending the release of a further announcement in relation to certain allegations contained in a report regarding the company, which may constitute inside information of the company.”
Samsonite had released a statement on Thursday evening which called the report “misleading” and “one-sided”.