Paul Singer's Elliott Management continues to rake in profits from its short against Portugal Telecom, SGPS (ADR) (NYSE:PT). The largest telecom operator in Portugal has suffered a -60% decline in share price this year, making Elliott's 2% short position all the more sweet.
Espirito Santo troubles
Portugal Telecom's troubles started with the corruption scandals surrounding the Espirito Santo group. Banco Espirito Santo group holds a 10% stake in Portugal Telecom. Things fell apart when Portugal's largest lender, Banco Espirito Santo SA (ELI:BES) was bailed out by the European Union, making the securities it had issued worthless. The fall of Espirito Santo empire has impacted many investors, even those who were not directly involved with the group. Portugal Telecom, SGPS (ADR) (NYSE:PT)'s troubles worsened when Rioforte, a financing arm of...
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