Valeant accused of ‘aggressive accounting games’ by renowned short-seller Jim Chanos
Nicolas Van Praet, 16 May 2014
Valeant Pharmaceuticals International Inc. teamed up with respected activist Bill Ackman to buy Allergan Inc. in part to build its own legitimacy with investors after several periods of short-selling in Valeant stock in recent years. So far, however, the partnership has done little to silence the most vocal voices betting against Canada’s largest drug company.
Take the attack against the company by renowned short-seller Jim Chanos on CNBC this week. Mr. Chanos, who famously shorted Enron Corp. before it went belly up in 2001, was short Valeant before it unveiled its $50-billion cash-and-stock bid for Allergan, the California-based maker of Botox. Clearly nothing has changed in his thinking today.
