Gautam Adani hires Wachtell in US
In its fight against short-seller Hindenburg Research, Gautam Adani has hired Wachtell, one of the most expensive law firms in the United States. Wachtell, known as one of Wall Street’s toughest defence law firms, has been hired by Adani Group to reassure investors about the conglomerate’s health.
According to the Financial Times, Adani Group has hired senior lawyers from New York’s Wachtell, Lipton, Rosen and Katz to help it deal with the fallout from Hindenburg’s damning report, which claimed that the conglomerate engaged in accounting fraud, stock manipulation, and other malpractices.
According to the report, Wachtell was contacted by the conglomerate at the office of Cyril Amarchand Mangaldas, the firm leading Adani Group’s defence. Cyril Shroff, whose daughter is married to Gautam Adani’s son, leads Cyril Amarchand Mangaldas.
Wachtell is supposedly looking for additional advisory help for the Adani Group, including those from crisis communications firms. The law firm with experience trying to thwart undesired corporate raiders will focus on the conglomerate’s legal, regulatory, and public relations needs.
Adani Group has lost up to $100 billion since the release of the Hindenburg report. Credit Suisse, Citigroup, and Standard Chartered no longer accept Adani bonds as collateral for margin loans. All of this occurred despite the group’s 413-page response, as well as multiple videos and statements from Gautam Adani and CFO Robbie Singh.
Meanwhile, index provider MSCI announced that it has lowered the free-float designations of four Adani group stocks – Adani Enterprises, Adani Total Gas, Adani Transmission, and ACC – but has not removed any of the stocks from its global indices. MSCI had previously stated that it had obtained feedback from multiple of market participants regarding the eligibility and free float determination of specific Adani Group securities for the index.