European property company Vivion has become the latest target of short-seller Muddy Waters.
In a lengthy report published on Wednesday, the hedge fund took aim at a series of allegedly suspicious related-party loans and transactions involving the €4bn company’s controlling shareholder, Israeli property magnate Amir Dayan.
Muddy Waters also claimed that Vivion was overstating the occupancy rates of its German property portfolio.
Luxembourg-based Vivion does not have publicly listed shares and Muddy Waters is instead betting against its bonds, of which there are around €1.4bn outstanding.
The value of the company’s debt plunged in secondary market trading on Wednesday, with Vivion’s €700m bond maturing in 2024 falling by 18 percentage points to 70 cents on the euro.
