NEW DELHI: Gautam Adani has hired Wachtell, one of the most expensive law firms in the US, to fight back against allegations made by short seller Hindenburg Research, the Financial Times(FT) reported on Friday.
"For decades, Wachtell has been among the most sought-after advisers by besieged corporate boards at some of the largest US companies trying to fend off activist investors or hostile takeovers," the FT said in its story.
The FT report also mentions that Adani group’s decision to hire Wachtell shows the severe international pressure on the group.
Meanwhile, the selloff in Adani group continued on Friday as MSCI decided to reduce the amount of shares it considers freely tradable in the public market for four companies in its indexes.
The MSCI move comes in the wake of a January 24 report by US short seller Hindenburg Research that has accused the Indian conglomerate of stock manipulation and improper use of offshore tax havens that obscure the extent of stock ownership of Adani family members in group firms. The group has denied any wrongdoing.
The Hindenburg report has plunged the group, led by billionaire Gautam Adani, into crisis, wiping some $110 billion off the value of the group's main seven listed firms.
In addition to Adani Enterprises - the group's coal-miner-cum-incubator for new projects, MSCI said it plans to cut the weightings for Adani Total Gas - a venture with France's TotalEnergies and Adani Transmission , a power transmission company.
It will also reduce the weighting of ACC, a major Indian cement company the Adani Group acquired from Holcim last year and which is not one of the group's main seven listed firms.
(With inputs from agencies)
