Wellington Controls 11.5% of Sino-Forest as Timber Producer’s Stock Drops
By Christopher Donville - Jul 4, 2011 9:56 AM ET
Wellington Management Co., the Boston-based investment firm that manages $663 billion, said it owns 11.5 percent of Sino-Forest Corp. (TRE), the Chinese tree-plantation operator targeted by short seller Carson Block.
The fund-management company controlled 28.3 million shares of Sino-Forest as of June 30, Wellington said in a regulatory filing. Robert Toner, Wellington’s vice president and counsel, didn’t immediately return a call seeking comment during the U.S. Independence Day holiday.
Sino-Forest’s stock has fallen 81 percent since a June 2 report by Muddy Waters LLC, a research company founded by Block, said Hong Kong- and Mississauga, Ontario-based timber producer -Forest overstated its tree-plantation holdings.
Sino-Forest, which has rejected the allegations, commissioned an independent investigation and appointed PricewaterhouseCoopers LLP to assist. Sino-Forest said June 14 the probe won’t be completed for two to three months.
Wellington has about $663 billion under management, according to its website.
Sino-Forest rose 30 cents, or 9.4 percent, to C$3.50 at 9:43 a.m. in Toronto Stock Exchange trading.
To contact the reporter on this story: Christopher Donville in Vancouver at cjdonville@bloomberg.net.
To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net.
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