Published On: Fri, Feb 10th, 2023

Adani Group hires US legal powerhouse Wachtell to take on Hindenburg

New Delhi: The Adani Group has hired one of Wall Street’s fiercest defense law firms to take on US short seller Hindenburg Research, which accused the Indian conglomerate of stock manipulation and accounting fraud, reported The Financial Times.

The development comes as billionaire Gautam Adani remains focused on reassuring investors

The development comes as billionaire Gautam Adani remains focused on reassuring investors that his business empire has been built on a strong foundation and faces no financial risk.

The FT report, quoting four people familiar with the matter, suggested that the Adani Group has approached senior lawyers at New York’s Wachtell, Lipton, Rosen & Katz for a solution to tackle the crisis it is facing after Hindenburg’s accusations significantly eroded its cumulative market capitalization and hurt investor sentiments.

The fact that the Adani Group has put Wachtell, one of the most expensive law firms in the US, on its payroll shows the impact of the Hindenburg report on its listed entities. The group is also facing significant pressure from global financial institutions after Hindenburg’s allegations.

For decades, Wachtell has built a reputation for being the most sought-after adviser by some of the largest US companies, who have been targeted by activist investors or faced a hostile takeover. While Adani Group has dismissed the allegations leveled by Hindenburg Research and responded with a 413-page rebuttal, it has had little to no impact on investors and global financial institutions.

The vast Adani Group has seven main listed companies and three other publicly-listed entities that it acquired since last year. All these companies have seen a massive slide in their stock prices after Hindenburg’s report. The conglomerate even had to call off the follow-on public offering (FPO) of its flagship company, Adani Enterprises. The report has even wiped off over $110 billion from the market capitalization of key Adani Group listed entities.

By hiring the US law firm, the Adani Group is not only planning to take on Hindenburg, but also reassuring global financial institutions and investors that the company remains in a strong position. Adani Group’s promoters recently prepaid loans worth $1.1 billion to release pledged shares to boost market sentiment. It is also planning to pay off $500 million to some foreign banks before schedule.

The FT report added that Wachtell was approached by Adani Group’s top lawyers at Cyril Amarchand Mangaldas, which is leading the defense of the industrial giant. Wachtell has been seeking to enlist further advisory support for the Adani Group, including from crisis communications firms, according to people quoted in the FT report. The US law firm will be primarily focusing on co-ordinating legal, regulatory and public relations for the group.

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Social Media Auto Publish Powered By :