- Corporate Travel Management says claims by hedge fund as VGI are mischievous and misleading.
- And it says VGI has a significant vested interest in promoting market uncertainty.
- The travel company says VGI’s latest claims raise no new substantive issues.
Corporate Travel Management has fought back against hedge fund VGI, sayings its claims are mischievous and misleading.
VGI last week criticised Corporate Travel’s (CTM) accounting processes and raised questions about the state of its cash-flow.
And this week it told investors it has “serious additional concerns” about Corporate Travel.
Corporate Travel went into a trading halt on Tuesday so it could assess the latest claims.
Today the company released a statement, saying VGI has a significant vested interest in promoting market uncertainty about the business.
VGI Partners is short 2,501,286 shares in Corporate Travel.
“VGI may continue to make mischievous and misleading claims about issues that CTM believes have no consequence for the financial performance of the business and execution of CTM’s successful business model,” the company says.
“The board will continue to ensure shareholders are fully informed about the fundamental performance of the business and does not intend to have the business distracted by baseless and self-serving claims.
“The CTM management team continues to focus on running the company for the benefit of our clients, staff and shareholders.”
In early trade today, Corporate Travel shares were up 10% to $22.04, but still down from a high of $33.87.
In August, the company posted full year statutory profit of $76.7 million, up 34%, on revenue of $372.2 million, up 14%.