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.
Posted in: Corporate News, Investing Tags: carson block, Muddy Waters LLC, Sino-Forest, Wellington Management Co.
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