Investors who bought Focus Media Holding Ltd. shares following bullish reports last week by firms, including Bank of America Corp. and Goldman Sachs Group Inc., lost as much as 66 percent after short seller Carson Block questioned its accounting.
Focus Media Holding Ltd., a Chinese advertising company targeted by short-seller Carson Block, received a bid from private-equity firms including Carlyle Group LP in what would be the country’s largest leveraged buyout.
Carson Block, the short seller and analyst who sparked a 74 percent drop in Sino-Forest Corp. shares when he said the company misstated its business, is finding it harder to attract believers to his latest research.
Trading in bullish Focus Media Holding Ltd. options reached the highest level since November before the Chinese advertising company announced a leveraged buyout by private-equity firms including Carlyle Group LP.
Focus Media Holding Ltd.’s biggest investor purchased more of the stock after a decline triggered by a Muddy Waters LLC report that alleged the Chinese company had overstated its outdoor advertising assets.