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. 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 weekThe Canadian Press