Grifols shares jump as auditor greenlights annual accounts

Grifols SA shares rallied from multiyear lows after an auditor signed off on the annual accounts of the Spanish plasma maker, providing some relief for a stock that’s been battered by a short-seller attack.

The stock rose as much as 22% in Madrid on Friday after Grifols published its annual consolidated accounts with an unqualified opinion from auditor KPMG, meaning it considers them fair. The shares had hit the lowest since 2012 on March 6, after Moody’s Investors Service placed Grifols’ credit rating under review. 

The management of Grifols and its board have been struggling to overcome an attack by short-seller Gotham City since it started in January. Problems have been compounded by blundered corporate communications, recent questions about the company’s ability to generate cash, as well as the decision by Moody’s.

Grifols had released unaudited earnings on Feb. 29. The delay in the audit sparked concerns among investors.

On Nov. 6, Gotham issued a series of new questions about possible selective disclosure of information to equity analysts. Gotham also questioned certain financial dealings with related parties linked to the Grifols family, the largest shareholder — an issue that has been at the center of its attack from the beginning.