One of France’s most courted companies dives after auditor fails to sign accounts – fr

One of France’s most courted companies dives after auditor fails to sign accounts – fr

One of the best-selling stocks in France fell 77% after its auditor refused to sign its annual report.

Solutions 30, a mid-size IT service provider, dropped out because EY said it did not have sufficient evidence to support the legality of certain transactions and whether any transactions were made with members of management.

According to Whale Wisdom, Solutions 30 only tracked manufacturing company Vallourec VK,
+ 0,58%,

retail company Casino Guichard-Perrachon CO,
+ 0,04%

and the airline Air France-KLM among the companies listed in Paris in the percentage of short bets against it, with the hedge funds Lansdowne Partners and Gladstone Capital Management among the firms betting on its decline.

The action had been halted since May 10 at the company’s request and was worth € 1.1 billion ($ 1.3 billion) before EY’s announcement.

Solutions 30 said he could step off the list and look for a new auditor, as he said he strongly disagreed with EY’s view. He says that as of December 31, there was 159 million euros in cash in his bank accounts, and he also listed what he said were the related party transactions at issue.

Short-selling research firm Muddy Waters said it had been short since May 2019, when it posted its eighth commentary on the company.

“We compare the current situation to this: imagine if you thought your partner was cheating on you with another. You arrive home at a time when you think the cheating is going on and you see your partner’s car in the driveway, with another unknown car. You enter and stop in front of your shared room. The door is closed and you hear sounds from inside indicating that both parties are performing for the gold medal. But the door is locked – you can’t open it. You are now EY, ”said a new report from Muddy Waters.


Please enter your comment!
Please enter your name here