Samsonite Gets Support From Biggest Holder After Stock Plunge
- Capital Group boosts stake in wake of short-seller attack
- Move is strategic bet after firm sold shares at higher price
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One of the world’s largest investment firms gave Samsonite International SA a significant vote of confidence after the luggage maker came under a blistering attack from a short seller.
Capital Group Cos., already the company’s biggest shareholder, paid about HK$359 million ($46 million) for 13.3 million Samsonite shares on Friday after the stock had its biggest two-day drop on record. The plunge followed a report by short-seller Blue Orca Capital LLC alleging accounting lapses and poor corporate governance.