Germany's Adler rejects allegations made by Viceroy as shares tumble

Germany's Adler Group SA said on Wednesday it strongly rejected allegations made in a report published by short seller Fraser Perring's Viceroy Research, which sent its shares down as much as a third earlier.

Adds context, shares

BERLIN, Oct 6 (Reuters) - Germany's Adler Group SA ADJ.DE said on Wednesday it strongly rejected allegations made in a report published by short seller Fraser Perring's Viceroy Research, which sent its shares down as much as a third earlier.

Viceroy Research, in a report published on Oct. 6, said Adler Group's "balance sheet has been artificially inflated to a significant degree, its shares are not investible", causing the group's shares to tumble.

"This is evidently false," said Adler in a statement.

"The real estate value set forth in Adler's balance sheet has been determined by independent market leading real estate property appraisers and confirmed independently by financing banks," it added.

The company, which is listed on Germany's smallcap index SDAX .SDAXI, said it was currently preparing a detailed response to the allegations and would comment on them shortly.

Shares in Adler closed 26% lower.

Rumours about a short-seller attack targeting Adler first surfaced in June and came after Viceroy Research issued a critical report on German financial services firm Grenke GLJn.DE last year.

(Reporting by Matthias Inverardi and Danilo Masoni; Writing by Madeline Chambers and Christoph Steitz; Editing by Elaine Hardcastle)

((Madeline.Chambers@thomsonreuters.com; +4930220133578;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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