Bawag Slumps After Short Seller Petrus Urges Halt to Payouts
- Petrus has a short position, betting Bawag shares will fall
- Bawag dismisses report as ‘inconsistent’ and ‘misleading’
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Bawag Group AG slumped the most in three years after activist investor Petrus Advisers disclosed a short position in the Austrian lender and raised questions about its deposit base, US real estate exposure and loans to management.
Bawag’s franchise is “degrading” and the lender has lost retail deposit market share, pushing up the ratio of loans to deposits, the investor said in a presentation. Petrus, previously a shareholder in the Austrian lender, said it had recently taken a short position, betting that the stock will decline.