WSP Global shares fall after short seller releases critical report

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MONTREAL - Shares of WSP Global Inc. fell in trading Wednesday after a prominent U.S. short-seller took aim at the engineering firm.

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Hey there, time traveller!
This article was published 03/04/2024 (612 days ago), so information in it may no longer be current.

MONTREAL – Shares of WSP Global Inc. fell in trading Wednesday after a prominent U.S. short-seller took aim at the engineering firm.

Spruce Point Capital Management attacked WSPin a 68-page report and argued in a press release that the company “appears to be under greater financial … stress” than its filings suggest.

The New York-based firm claims WSP seems to have “embellished” its earnings quality through “problematic accounting revisions,” and that its board needs new directors independent of management.

The WSP Global Inc. logo is seen in this undated handout photo. *MANDATORY CREDIT*
The WSP Global Inc. logo is seen in this undated handout photo. *MANDATORY CREDIT*

In an email, WSP says it is reviewing the report and that it maintains the highest governance standards.

Spruce Point says it sees 25 per cent to 50 per cent downside in the Montreal-based company’s shares, or about $110 to $165 per share.

WSP shares fell $13.48 or more than six per cent to $207.00 in early afternoon trading Wednesday. The stock hit a record high of $230.98 last week

This report by The Canadian Press was first published April 3, 2024.

Companies in this story: (TSX:WSP)

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