Travel Agents

Corporate Travel Management threatens to sue hedge fund over scathing report

Ali Coulton

Ali Coulton

Corporate Travel Management (CTM) has threatened VGI Partners with a lawsuit following the hedge fund’s explosive allegations against the corporate travel company.

VGI, which has previously disclosed its short position in CTM,  released a scathing report of the company’s business practices, highlighting 20 “red flags” and throwing into question its accounting practices and the scale of its business.

Short-selling is the legal practice of betting the share price of a company will fall. It’s common for short-sellers to criticise their targets and release reports detailing their shortcomings or accusing them of not providing enough information to their shareholders.

According to SMH, the lawsuit alleges a conspiracy to hurt the company and market manipulation.

If it goes ahead the case could reshape the rules of public criticism against businesses.

CTM’s lawyers have requested VGI turn over any documents and the names of people who assisted it with the report.

Legal sources have told SMH the request raised the possibility the hedge fund was assisted by financial advisors and journalists. It also alleges VGI may have offered employees payments in exchange for information.

Jamie Pherous, CEO of CTM, told the Courier Mail that short-sellers need stricter regulations to put a stop to “flimsy analysis and glib assertions”.

“There are lots of other high-growth ASX companies at which they could have thrown 20 poison darts … but it needs to be balanced,” he said.

“The same laws should apply to short sellers as apply to a company director.”

CTM has declined Travel Weekly’s request for comment.

The corporate travel company posted its half-yearly results last week, reporting double-digit growth across all key financial metrics.

The company’s underlying net profit was $46.2 million in the six months to 31 December 2018 – up a whopping 20 per cent compared to the prior corresponding period.

SEE WHAT PEOPLE ARE SAYING

  • sting

    …so they are more worried about share prices than looking good financially… crappy but true..

Aviation

Destinations

Tourism

International airport to be built “right on top” of world-famous tourist attraction

If you’re a travel professional and doing all you can to avoid the dangers of overtourism like the plague, you might want to sit down while reading this.

Share

CommentComments

Aviation

Report finds brakes weren’t used before plane crash that killed 41

Those seeking answers to why the Russian Aeroflot plane crash that killed 41 people occurred have been given a bit of clarity around the tragic incident.

Share

CommentComments

Destinations

Technology

TripAdvisor steps in after restaurant roasted for issuing tourists huge bill

We’re such tight-arses here at Travel Weekly that we often adopt the ‘dine and dash’ strategy when eating out.

Share

CommentComments

Destinations

Wholesalers

Excite Holidays launches new guide to Indonesia

Coincidentally, Indonesia has just re-elected its president, and Travel Weekly’s editor is having dinner at an Indonesian restaurant tonight.

Share

CommentComments

Technology

The 13 mobile apps travellers can’t go without

Here are 13 must-have apps for travellers, with Tinder, Grindr and Candy Crush Saga surprising omissions.

Share

CommentComments

Hotels

Midweek Interview

Midweek Interview with Next Story Group’s Alex Billing

We recently shared a blanket in front of the fire with Next Story Group’s regional vice president of operations. Oh, and we interviewed him too.

Share

CommentComments

Travel Agents

Wholesalers

Trafalgar and TTC sister brands celebrate National Agent Appreciation Day with deals, treats + more

Travel Weekly staff are using the excuse of National Agent Appreciation Day to hold an office beer pong tournament, with Panadol and Berocca on standby for tomorrow.

Share

CommentComments

Cruise

Cruise wrap: P&O hosts Qld Maroons fan meet, SeaDream’s new sustainable ship, Cruise360 news + more!

Here’s a cruise wrap complete with a few ripper footy legends to get you in the mood for some State of Origin action next month.

Share

CommentComments

Aviation

Migrants flood French airport terminal, demand to see PM and Air France CEO

by Christian Fleetwood

Hundreds of migrants have flooded an airport terminal in France. As in they turned up in droves – not turned on all the taps.

Share

CommentComments

Events

ATTN: Women in Travel Awards 2019 finalists revealed!

Yes, the time has finally arrived for Travel Weekly to announce the finalists for this year’s Women in Travel Awards! We even bought a klaxon for the occasion.

Share

CommentComments

Aviation

Michael Slater removed from Qantas flight after heated argument onboard

Ex-Australian cricketer and current Seven Network presenter Michael Slater has been dismissed by a Qantas umpire after a heated argument onboard.

Share

CommentComments

Destinations

Events

Yippee! All the shots from The Amazing Tastes of Thailand event in Sydney!

The photos from the ATOT event in Sydney are up! We promise there are no squinting guests or flies left undone in any of the shots.

Share

CommentComments