France's AMF watchdog suspects Muddy Waters of 'deception' on Casino -Le Monde (updated)

Finatis SA

06/06/2019 13:04

(Adds more detail and background, AMF comments)
    PARIS, June 6 (Reuters) - France's AMF financial regulator
suspects short-selling firm Muddy Waters of "deception"
regarding supermarket retailer Casino  CASP.PA  whose shares
have been hurt by Muddy Waters' negative comments, newspaper Le
Monde reported on Thursday.
    French representatives for Muddy Waters had no immediate
comment on the report. Casino declined comment.
    "Inquiries have been opened, looking at both the stock price
movements and the release of financial information. Procedures
are under way and the AMF will not comment on either the
content, nor the state of progress, of these matters," an AMF
spokeswoman said.
    In 2015, Muddy Waters criticised Casino’s complex structure
and accounting practices, saying it had high leverage and was
managed for the short-term.
    The AMF launched a probe into this criticism in early 2016
and a conclusion is expected this year. 
    Casino has consistently refuted Muddy Waters' accusations.
    Casino parent Rallye  GENC.PA  was placed under protection
from creditors last month.  urn:newsml:reuters.com:*:nL5N2300TA
    Muddy Waters said this action was "a resounding vindication
of the warnings we sounded."
    Criticising France as "an unwelcoming place for investors
who are also whistleblowers", it added: "We encourage the AMF to
redirect its focus from skeptics and focus instead on their
warnings." 
    Casino has been grappling with large debts and a tough
business environment, and has suffered credit ratings downgrades
from Standard & Poor's and Moody's.
    Casino is Rallye's main asset. Rallye is controlled by
Fonciere Euris, Finatis and Euris, which are all in the hands of
Casino chairman and CEO Jean-Charles Naouri.

 (Reporting by Sudip Kar-Gupta and Pascale Denis;
Editing by Dominique Vidalon)
 ((sudip.kargupta@thomsonreuters.com; +33 1 49 49 53 84;))