Originaly Posted @ Adani hires US legal powerhouse Wachtell in short-seller battle | Financial Times (ft.com)
In the fight against Hindenburg’s accusations, an Indian conglomerate hires lawyers known for their tenacious activism defence. Please use the sharing tools accessible via the share button located at the top or side of each article. Copying articles to share with others is a violation of the FT.com Terms and Conditions and Copyright Policy.
To purchase additional rights, send an email to email@example.com. Subscribers can use the gift article service to share up to 10 or 20 articles each month. More information is available at https://www.ft.com/tour. https://www.ft.com/content/d0d318ce-b223-4026-8e7a-69bbd55d36f7
Gautam Adani has recruited one of Wall Street’s most zealous activism defence law firms to counter charges made by short seller Hindenburg Research, as the Indian billionaire seeks to reassure investors about the financial health of his corporate empire.
Gautam Adani has hired one of Wall Street’s toughest law firms to push back against accusations by short seller Hindenburg Research, as the Indian billionaire struggles to prove to investors that his business empire is doing ok.
According to four people with direct knowledge of the matter, the Adani Group has hired senior lawyers from New York’s Wachtell, Lipton, Rosen & Katz to advise it on how to deal with the crisis that has befallen the Indian conglomerate since Hindenburg accused it of accounting fraud and stock market manipulation in late January.
The Adani Corporation’s choice to hire Wachtell, one of the most expensive law firms in the United States, demonstrates the intense worldwide pressure the group has been subjected to since Hindenburg levelled its charges.
For decades, Wachtell has been one of the most sought-after counsel by embattled company boards at some of the world’s top corporations attempting to stave off activist investors or hostile takeovers.
Since New York-based Hindenburg announced its charges, the Adani Group, whose business interests range from airports to energy, has faced difficulties. In a 413-page reply, the Gujarat-based corporation disputed the charges.
The global index provider MSCI adjusted its weightings for many Adani Group companies this week after examining how many shares were available on the stock market, while the Financial Times reported that Gautam Adani returned a $1.1 billion share-backed loan after facing a $500 million margin call.
According to persons familiar with the situation, Wachtell was approached by the Adani Group’s lawyers at the India-based Cyril Amarchand Mangaldas firm, which is leading the industrial giant’s defence.
Cyril Shroff leads Cyril Amarchand Mangaldas, whose daughter Paridhi is married to Gautam Adani’s oldest son and works at the law business.
Since taking on the post, Wachtell has been seeking further advising support for the Adani Group, including from crisis communications firms, according to some of the people.
Adani, Wachtell, and Shroff all declined to comment.
Wachtell’s primary responsibilities will be to coordinate legal, regulatory, and public relations for the group, whose market value has dropped by more than $100 billion since Hindenburg published its paper claiming wrongdoing.
Wachtell, founded in 1965 by the partners who gave the company its name, has a reputation for taking on challenging corporate governance disputes. Its track record of repelling unwelcome corporate raiders since the 1980s has attracted clients who are on the radar of investors and authorities.
- More information can be found at https://www.ft.com/tour. https://www.ft.com/content/d0d318ce-b223-4026-8e7a-69bbd55d36f7