Paulson explains $107m Sino-Forest loss
By Britt Erica Tunick
Fri Jun 24, 2011
In a letter to investors, Paulson finally detailed the firm’s losses, which are smaller than news reports had assumed, and explained what the firm was thinking when it became the largest shareholder in a company that some believe to be a fraud.
After weeks of refusing to discuss its Sino-Forest
position, Paulson & Co. sent its investors a four-page
letter earlier today detailing the firm's involvement with the
Chinese forestry company, which has been accused of fraudulent
accounting and cost Paulson hundreds of millions of dollars of
paper losses when those allegations caused its stock to
collapse in early June.
In the letter, Paulson explains its initial
decision to invest in the company and the details surrounding
the firm's sale of its entire position between June 6 and June
17. The firm had declined to explain its position to investors,
even when asked about it at the firm's
recent investor event in Paris.
"Now that we have sold our position, we can discuss this
matter with our investors in more detail. Therefore, we would
like to discuss with...
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