“Due to the uncertainty over Sino-Forest's public disclosures and financial statements, we have sold our stock and await the results of the independent committee's investigation,” Paulson and Co said today.
The announcement was made public in a regulatory filing for the period ending June 17. The disclosure states that Paulson’s position has fallen from 34,714,300 shares to zero, meaning the company has sold its entire 14.1 per cent stake. The filing does not disclose the date on which the securities were sold, or over how long a period they were sold. However, a few days after Muddy Waters released its report full of allegations against Sino-Forest, the company said in an interview that management had been in touch with John Paulson, who heads the fund, and he said that he continued to hold his position.