NMC and Burford count cost of hedge fund attack

TWO London-listed companies are still grappling with the fallout from attacks by the aggressive US hedge fund Muddy Waters. Shares in private hospital group

NMC Health sank into the red as it launched another rebuttal to Muddy Waters’ allegations.

But litigation funder and former stock market darling Burford

Capital climbed higher as it attracted a Saudi Arabian investor.

NMC Health tried to soothe worries about the cost of a women’s hospital redevelopment in Abu Dhabi by publishing third-party documents about the work it carried out. Muddy Waters hinted NMC had overpaid on the £82m project and highlighted it as one of a slew of concerns about the company’s finances, debt and relationship with its auditor that were detailed in a blistering 34-page takedown earlier this month.

The hedge fund, run by shortseller Carson Block, has taken a short position in NMC, but has not said how big it is.

NMC’s investors were unimpressed with its latest counterargument, with shares yesterday falling 2.6pc, or 46p, to 1736p. Its stock is around a third lower than before Muddy Waters’ pounce.

In August, AIM-listed Burford Capital became the victim of a Muddy Waters offensive over allegations surrounding its accounting practices and management.

Burford is still cleaning up the mess left behind, and is tussling with the London Stock Exchange to find out whether parties connected to Muddy Waters illegally manipulated its shares. But last night its shares were up 2.4pc, or 17p, at 717.5p, after a Saudi Arabian investment firm, Mithaq Capital, bought a 5pc stake.

Housebuilder Galliford Try also got a boost from a new investor after a Texas-based group, Dimensional Fund Advisors, bought a 4.5pc chunk of the company. Galliford shares edged 1.8pc higher, or 15.5p, to 865.5p by the close. Fellow construction giant Balfour Beatty managed to eke out a modest gain despite losing a contract to refurbish the MI6 HQ in central London after copies of top-secret blueprints of the building went missing.

Although many of them have since been recovered, the incident has nonetheless been dubbed ‘Skyfail’ by the tabloid press.

Shares traded lower for much of the day, but ended 0.2pc higher, or 0.6p, at 268.6p. London’s premier index, the

FTSE 100, rose 0.2pc, or 12.66 points, to 7644.9.

The Footsie has now achieved an 11-day winning streak. It was propped up by gains among London’s heavyweight mining and metals firms, which have risen alongside hopes that the US and China will make more progress in defusing their costly trade war.

Beijing has said it is in close contact with Washington after signing an initial agreement, which sent trade- sensitive shares higher, including Evraz (up 1.2pc, or 4.6p, to 400.5p), Glencore (up 1.7pc, or 4p, to 238.75p) and BHP (up 1.1pc, or 19.4p, to 1810.8p).

The mid-cap FTSE 250 was also on the up, adding 0.3pc, or 77.9 points, to 22058.99.

Just Eat was one of the Footsie’s big winners yesterday, adding 2.4pc, or 19.6p, to close at 829.6p as the clock ticks in a bidding war over the fast-food delivery giant.

Just Eat shareholders have less than a fortnight left to decide whether to back a bid put forward by Dutch rival Takeaway – which Just Eat bosses favour – and one by Prosus, an investment firm owned by South Africa’s Naspers.

The deadline for investors to support one of them is 1pm on January 10.

Prudential’s stock fell 0.1pc, or 1p, at 1440.5p after it completed a deal to buy half of Thanachart Fund Management, a Thai mutual fund manager, for £105m.