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Grifols Issues Denial Document Over Gotham Report

HEALTH CARE SECTOR
Grifols (GRF SM), the subject of a bearish report from Gotham Research has published a 5-page denial document which includes accusing Gotham of spreading "false information and speculation". Again, we don't take a view on the veracity of any of the arguments therein but note GRF equity opened yesterday down over 40% and ended the day down 25%.

  1. Its credit was hit hard with the most liquid bond (ZQ412375 Corp) seeing its OAS widen by over 120bp yesterday. The equity is indicating (marginally) higher this morning but the initial bond price indication is a further 6bp of widening.
  2. Worth noting that GRF does have US ADRs and US debt and its accounts have been certified on Form 20-F - not that the rubber stamp from US regulators means nirvana but this is not simply a Spanish healthcare stock, only locally regulated and monitored.

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