Xylem slides after Spruce Point issues 'strong sell' opinion

Xylem

09/08/2023 14:18

** Shares of water tech co Xylem  XYL.N  fall 4% to $100.9
premarket
    ** Short seller Spruce Point Capital issues "strong sell"
opinion on XYL
    ** Spruce Point says it has found evidence that, prior to
the acquisition of Evoqua Water Technologies Corp , Xylem was
struggling to meet its long-term goals as pressures were
increasing
    ** XYL acquired Evoqua in a $7.5 bln deal in Jan
    ** "We believe Xylem's liquidity is strained and there is no
near-term path to accretive value creation" - Spruce Point
    ** Spruce Point says XYL stock faces up to 30% to 45%
long-term downside risk
    ** Spruce Point has a short position in Xylem and owns
derivative securities that stand to net benefit if share price
fall
    ** XYL did not immediately respond to a Reuters request for
comment
    ** Up to last close, stock had fallen nearly 5% YTD

 (Reporting by Shashwat Chauhan in Bengaluru)
 ((Shashwat.Chauhan@thomsonreuters.com;))