MONTREAL — Shares of WSP Global Inc. fell in trading Wednesday after a prominent U.S. short-seller took aim at the engineering firm.
The New York-based firm claims WSP seems to have "embellished" its earnings quality through "problematic accounting revisions," and that its board needs new directors independent of management.Spruce Point says it sees 25 per cent to 50 per cent downside in the Montreal-based company's shares, or about $110 to $165 per share.
Shares of WSP fell nearly 5% to C$209.99 after the short-selling focused investment management highlighted a long-term downside risk of 25% to 50%, or about C$110.00 to C$165.00 per share. Spruce Point said WSP, which has bought 22 companies totaling $4.3 billion since 2020, was facing challenged margins and high employee turnover.
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