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

One response to “Corporate Travel Management threatens to sue hedge fund over scathing report”

Leave a Reply

Cruise

“Abducted by luxurious pirates!” Crystal Cruises ship heads to Bahamas after US issues arrest warrant

The Crystal Symphony is channelling its inner OJ Simpson by running from the law. Unfortunately the cruise ship doesn’t have Al Cowlings by its side to keep it going.

Share

CommentComments

Aviation

United Airlines flight turned back after passengers start a “riot”

These two unruly passengers decided “if I can’t have business class seats, then no one can have business class seats!”

Share

CommentComments

Aviation

Scoot to resume Singapore-Gold Coast flights in February

Ready your wallets, because this may be one of the more expensive Valentine’s Days with a spontaneous venture to south-east Asia.

Share

CommentComments

Travel Agents

Travel workers stage national day of action urging politicians to introduce AFTA’s recovery package

Travel industry folk across the country are participating in a National Travel Day of Action outside the offices of key federal and state parliamentarians today to speak up about the industry’s unique struggle.

Share

CommentComments

Hotels

Club Med’s Pacific boss speak out against WA’s delayed reopening

The kings of the all-inclusive holidays have signalled their support for WA’s travel agent community, blowing a big raspberry in Premier McGowan’s direction.

Share

CommentComments

Hotels

REVIEW: QT Melbourne is a luxury boutique with a rock ‘n’ roll mentality

by Ali Coulton

QT’s Melbourne property is the embodiment of everything we love about the Victorian capital – it’s both uber-chic and a little bit bad-ass.

Share

CommentComments

Aviation

Qantas group cuts capacity after WA delays border reopening indefinitely

Aussie airlines are having to continuously lower expectations, announcing more cuts than a post-lockdown hair salon.

Share

CommentComments

News

ICAO Report says Ryanair bomb threat ‘deliberately false’

by James Harrison

The new report from ICAO has exposed a bold move of political repression by the Belarusian president, who allegedly orchestrated a bomb scare on a Ryanair flight.

Share

CommentComments

Travel Agents

Agent shines a light on cruising in a time of COVID

After two years of being denied her usual travel escapades, this Queensland-based travel agent had the opportunity to dust off her suitcase and give travellers confidence by sharing her experience.

Share

CommentComments

News

Entry restrictions eased for international travellers

by Ali Coulton

Those with a debilitating fear of having foreign objects wedged in their noses will be over the moon upon reading this recent announcement from the Minister of Health.

Share

CommentComments

Hotels

Fitzroy Island Resort gets million-dollar makeover as bounce-back anticipation grows

Queensland’s ultra-luxe island resort is about to get at least 60 per cent more lavish, by our reckoning. However, we made that stat up on the spot so best to just click here and see for yourself.

Share

CommentComments

Tourism

Journey Beyond Group Looks Beyond 2022 and Releases 2023 Season!

by Sponsored By Journey Beyond

Journey Beyond is going above and beyond to take you to infinity… and beyond. Or at least to 2023, a good start!

Share

CommentComments