NMC.L Share News (NMC)

(Alliance News) - NMC Health PLC on Monday said it is "disappointed" with the share price reaction following the "attack" on the company last week.

The stock was trading 9.0% higher in London at 1,418.00p a share but is down by around half over the past week.

Muddy Waters, which was founded by short-seller Carson Block, on Tuesday last week said: "We have serious doubts about the company's financial statements, including its asset values, cash balance, reported profit, and reported debt levels."

Short selling is a trading strategy that speculates on the decline in a stock.

On Monday, the FTSE 100-listed healthcare chain said it will be commencing an independent, third-party investigation into claims made by short seller Muddy Waters.

The independent review will be overseen by a committee made up of a majority of independent non-executive directors.

"We are confident that this review, when complete, will be entirely confirmatory of the disclosures provided by the company to date. We will also be progressing relevant legal and regulatory options following the actions taken by third parties to mislead the market and manipulate the share price," said NMC.

It added that it believes its current share price is "not a fair reflection of the value of the company" which has a "consistent track record of strong growth and cash generation".

By Evelina Grecenko; evelinagrecenko@alliancenews.com

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