Deals
China Reverse Merger Pits Morgan Stanley Against Hedge Funds
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On the morning of May 18, Kevin Barnes published a report accusing executives of Chinese fertilizer maker Yongye International Inc. of using acquisitions to loot cash from the company and manipulate earnings.
Barnes, an analyst at Cheyenne, Wyoming-based hedge fund Absaroka Capital Management LLC, set an estimated share value of $1 for Yongye. He said Absaroka had already bet an amount he wouldn’t reveal on a decline in the stock, which closed the day before at $4.58. The shares fell 23 percent in two days.