Shares in NMC Health (NMC) dropped again as the private hospital firm fought back against explosive claims of financial mismanagement. The company said claims made by US hedge fund Muddy Waters in a 34-page report published earlier this week appear unfounded – despite their crippling effect on its share price. The stock plunged by a third when the attack was launched on Tuesday, wiping £1.8bn off the business. Muddy Waters, which makes money by betting that the price of shares in companies will fall, raised “serious doubts” over NMC’s finances and claimed there was poor corporate governance.
The founder of investment platform AJ Bell (AJB) insisted he remains committed to the business after selling £23m worth of shares to raise “a few quid to go and play with”. Andy Bell, chief executive of the firm he co-founded in 1995, reduced his stake from 25% to 24% and will remain the company’s largest shareholder. Shares in AJ Bell have more than doubled in value since the fund shop floated on the London Stock Exchange in December 2018. The surge means Mr Bell’s remaining stake is worth about £415m. One industry analyst described the shares’ current valuation as “stratospheric”.
Blackstone has sparked hopes of a post-election dealmaking spree after snapping up warehouse owner Hansteen Holdings (HSTN) for £500m. The private equity giant wants Hansteen’s warehouses for its own new logistics company Mileway, which is seeking to cash in on the online shopping and food delivery boom, paying 116.5p a share for the business. It comes as experts brace for a flood of similar takeovers, with firms expected to spend billions of pounds in the UK now that political uncertainty has been lifted by the Conservatives’ resounding general election win.
