Daily Archives: July 5, 2011

John Gapper

The problem of Chinese companies that have run into trouble after gaining listings on US and Canadian exchanges through reverse mergers reminds me of the controversy about emerging market investment companies being listed in London.

I noted last week Richard Lambert’s FT article on Vallares, the investment company run by Nat Rothschild and Tony Hayward, which has promised London investors transparency along with chance to buy undervalued commodity assets.

Meanwhile, the FT has covered the short-selling attacks on Chinese companies listed on the Toronto Stock Exchange and US bourses, including Nasdaq. Twelve of these have been suspended from trading on Nasdaq over accounting flaws. 

In June 2004, Mark Zuckerberg turned down an offer of $10m for his four-month-old social network. Four years later, Twitter’s founders – Biz Stone, Ev Williams and Jack Dorsey – declined an all-stock offer worth $500m from Mr Zuckerberg.