Einhorn’s Greenlight Buys Chemours, Blasts Citron Short Call
- Report overestimates legal liability costs, Greenlight says
- Hedge fund sold Macy’s stake for a loss after guidance cut
Andrew Left: No War of Words With Einhorn Over Chemours
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David Einhorn’s Greenlight Capital said it took a stake in Chemours Co., the titanium-dioxide pigment maker spun off from DuPont Co., denouncing a short recommendation from Andrew Left’s Citron Research that said the company had been "designed to fail."
"We see an obvious flaw in this analysis," the hedge fund wrote in a second-quarter letter to investors dated Tuesday. Greenlight refuted Citron’s contention that liabilities, including 3,500 lawsuits from people living near a Teflon plant in Parkersburg, West Virginia, would bankrupt the company. Greenlight said it used a decline in the company’s shares caused by the short-seller’s report in June to add to its stake.