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.
Focus Media Holding Ltd. expanded a loan that backed the Carlyle Group LP-led takeover of the Chinese digital advertising company after getting approval to refinance debt for paying dividends, two people familiar with the matter said.
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.