BlackRock Increases its Stake in Grifols in the Midst of a Judicial Struggle with Gotham

BlackRock has raised its stake in Grifols above 4%, in the midst of the Spanish multinational blood products’ legal dispute with Gotham City Research, following reports from the bearish fund that questioned its accounting and solvency. Thus, the fund manager has reached a 4.2% presence in Grifols, from the previous 3.9% , as notified to the National Securities Market Commission (Cnmv).

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BlackRock’s participation in Grifols is divided

Based on market prices this Friday around one o’clock in the afternoon, the BlackRock package would have a value of about 187 million euros, as Grifols was close to 10.5 euros per share and rose 4.1% on the stock market. being the greatest rise of the Ibex 35. During the week it was also the most bullish value with a provisional revaluation of 9.8%. All in all, so far in 2024 it is the most bearish value of the Spanish selective, with a fall of 32% after the crisis last January.

Specifically, BlackRock’s participation in Grifols is divided between 2.7%, which corresponds to voting rights attributed to the shares , and the remaining 1.4%, obtained through financial instruments.

Grifols considers Gotham a vehicle for crime

This operation occurs a week after Grifols informed the CNMV, after the market closed, that, as a result of reports that questioned its accounting and solvency, it has filed before the United States District Court of the District Southern New York a lawsuit against Gotham City Research , the director and founder of the fund, Daniel Yu, General Industrial Partners, Cyrus de Weck, and its investees to request compensation for the financial and reputational damages caused to the company and its shareholders.

The complaint alleges that the defendants obtained “a substantial short position” in Grifols by subsequently publishing and distributing a report “containing falsehoods about Grifols’ accounting, communications, finances, and integrity.” In this lawsuit, the Catalan company requests the application of precautionary measures so that the defendants retract and do not persist in their actions , while at the same time claiming financial compensation that, however, has not been quantified. Grifols also requests before the New York court that the defendants be considered “fully responsible” for the “illicit behavior” alleged in the lawsuit.

In addition, he takes the opportunity to document the catalog of crimes and convictions of Daniel Yu, whom he accuses of creating Gotham “as a vehicle for his criminal enterprise.

”The lawsuit includes Gotham’s initial report on Grifols in which it “falsely” accuses the blood products company of manipulating its financial indicators, misrepresenting its leverage and misleading investors, a second from the firm, published the next day, which corrects and modifies the first, and a document in which the substantial differences between both reports are compared. “It is the defendants who have participated in a fraudulent scheme to deceive investors and regulatory agencies,” he warns in the complaint.

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(Featured image by  Ibrahim Boran via Unsplash)

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First published in PlantaDoce. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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