Wellington Management says it controls 11.5% of Sino-Forest

Xavier Ng/Reuters Xavier Ng/Reuters

The company logo of Sino-Forest is displayed at the entrance of its office in Hong Kong.

  Jul 4, 2011 – 11:21 AM ET | Last Updated: Jul 4, 2011 1:26 PM ET

By Christopher Donville

July 4 — Wellington Management Co., the Boston-based investment firm that manages US$663-billion, said it owns 11.5% of Sino-Forest Corp., the Chinese tree- plantation operator targeted by short seller Carson Block.

The fund-management company controlled 28.3 million shares of Sino-Forest as of June 30, Wellington said in a regulatory filing. Robert Toner, Wellington’s vice president and counsel, didn’t immediately return a call seeking comment during the U.S. Independence Day holiday.

Sino-Forest’s stock has fallen 81% since a June 2 report by Muddy Waters LLC, a research company founded by Block, said Hong Kong- and Mississauga, Ontario-based timber producer – Forest overstated its tree-plantation holdings.

Sino-Forest, which has rejected the allegations, commissioned an independent investigation and appointed PricewaterhouseCoopers LLP to assist. Sino-Forest said June 14 the probe won’t be completed for two to three months.

Wellington has about US$663-billion under management, according to its website.

Sino-Forest rose 30 cents, or 9.4%, to $3.50 at 9:43 a.m. in Toronto Stock Exchange trading.

Bloomberg News

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