Hindenburg Research — an investment research firm that makes money when the price of Genworth Financial Inc. common stock goes down — says regulators will reject efforts by China Oceanwide Holdings Group Co. Ltd. to acquire Genworth.
“This deal would be a disaster for policyholders,” the firm says in a blog article.
(Related: Genworth Reminds Analysts That GLIC Will Stand Alone)
China Oceanwide is a Beijing-based real estate development company and financial services company that announced plans to acquire Genworth in October 2016.
Genworth executives said Wednesday, during a conference call with securities analysts, that they believe that China Oceanwide has a good shot at getting the approvals needed to complete the acquisition by the end of the year.
Hindenburg was started by Nate Anderson. Anderson is also the founder and chief executive officer of ClaritySpring Inc., a hedge fund.