Grifols has scheduled a conference call for tomorrow, Wednesday, to discuss the situation with investors by telephone, aiming to address questions raised by Gotham City Research. This event comes as Banco Santander and Citi analysts, cited by Bloomberg, weigh in on the matter and respond to Gotham City Research’s claims.
The bear fund surfaced a report early today alleging that Grifols manipulated debt figures and EBITDA to lower leverage, effectively making the stock appear more attractive than it truly was. The report warns that such moves could render the shares uninvestable, a charge that has sparked debate among market participants. Based on Gotham City Research’s assertions and subsequent market reactions.
What does Gotham City say in the report accusing Grifols of manipulating its accounts?
Gotham City Research points to several red flags in its analysis, including undisclosed transactions with parties related to Grifols. The fund argues that, at a minimum, the quality of the company’s earnings and reported results leaves significant questions unresolved, suggesting a need for deeper scrutiny by investors and regulators alike. Gotham City Research report summary.
Early Monday, the fund filed a notice with the National Securities Market Commission (CNMV), noting a 0.57% short position in Grifols’ capital. Using Monday’s closing price, the market value of that position was around 34.6 million euros. If Gotham’s short thesis is correct and the stock moves as they anticipate, the fund could realize a profit near 9 million euros based on current levels. CNMV filing and market data cited by Gotham.
The Grifols management responded with a firm denial, calling Gotham City Research’s accusations unfounded. In a subsequent statement addressed to the CNMV, the company suggested that the report’s aims extend beyond the facts, arguing that the fund’s objective was to drive down the share price for strategic reasons. Grifols official statements.
Grifols reviewed the accounting methods applied to operations mentioned in Gotham’s report and reaffirmed that those practices were fully approved by its auditor, KPMG. The company emphasized that the measures in question were not invented for disguise but were in line with standard accounting practice and supervisory oversight. Corporate governance disclosures and auditor confirmation.
Stock analysts stunned by accusations against Grifols
Analysts noted that the counterclaims have prompted a broader discussion about the integrity of reported figures and the processes behind corporate disclosures. They highlighted that the transactions cited by Gotham were previously recorded in the company’s books and reflected in public accounts. The matter has been filed with the CNMV in Europe and the U.S. Securities and Exchange Commission, indicating no new information that could be considered confidential at this stage. Market commentary and regulatory filings.
Grifols maintains that it exercises control over Haema and Biotest through strategic oversight rather than outright ownership of their shares. The company explained that the Grifols family consolidated these entities in its accounts together with the directors and former directors of the investment company Scranton as part of its disclosure framework. Gotham City Research has criticized this consolidation as a potential area of concern for readers assessing the true exposure and governance of the group. Company governance notes and Gotham’s critique.