UPDATE: Sino-Forest Set To Close Down More Than 60% after Resuming Trade
Sino-Forest Corporation (TRE.TO), a commercial forest plantation operator in China, is set to close down more than 60% after resuming trade at around 11am ET, having defended itself against allegations made against the company yesterday. Today's losses add to the 20% lost yesterday and take Sino-Forest back to levels it hadn't seen since the second half of 2006.
Trading in the stock was halted shortly after 1pm ET yesterday.
Sino-Forest today commented on the share price decline on June 2, 2011, as a result of the allegations made in a 'report' issued on a website by a short seller operating under the name Muddy Waters, LLC.
The company said it was not contacted by Muddy Waters for comment ahead of publication of its report. "The Board of Directors and management of Sino-Forest wish to state clearly that there is no material change in its business or inaccuracy contained in its corporate reports and filings that needs to be brought to the attention of the market. Further we recommend shareholders take extreme caution in responding to the Muddy Waters report," the company said in a statement.
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