(Bloomberg) David Einhorn’s Greenlight Capital said it took a stake in Chemours Co., the titanium-dioxide pigment maker spun off from DuPont Co., denouncing a short recommendation from Andrew Left’s Citron Research that said the company had been “designed to fail.”
“We see an obvious flaw in this analysis,” the hedge fund wrote in a second-quarter letter to investors dated Tuesday. Greenlight refuted Citron’s contention that liabilities, including 3,500 lawsuits from people living near a Teflon plant in Parkersburg, West Virginia, would bankrupt the company. Greenlight said it used a decline in the company’s shares caused by the short-seller’s report in June to add to its stake.
