Siddu should quit, not you; we could have fought together: Poojary to Krishna

Abu Dhabi, Feb 17: NMC Health Plc, a hospital operator targeted by short-seller Muddy Waters, said founder Bavaguthu Raghuram Shetty resigned amid investor concern he faced a margin call and misrepresented his stake.

The board asked for Co-Chairman Shetty’s resignation and it takes effect immediately, according to a person with knowledge of the situation. NMC has lost four board members since Friday, including Vice Chairman Khaleefa Butti, whose holdings are also being probed. The stock, the worst performer on the FTSE-100 Index this year, fell as much as 9.2 percent Monday morning and then rebounded.

“The resignation of senior board members should be viewed positively,” said Abdulla Nahlawi, an analyst at Rasmala Investment Bank in Dubai. “The credibility of the current board has been jeopardized with the unfolding of the recent events.”

NMC shares lost almost half their value the first week of February on speculation the company’s main investors faced a margin call, in which banks seize shares pledged as collateral. NMC said Friday that First Abu Dhabi Bank and Al Salam Bank Bahrain obtained 20 million shares in the company from BRS International Holding, an investment vehicle of NMC’s top shareholders. The banks sold more than 8 million of those shares as “enforcement of security,” NMC said.

NMC operates the largest medical network in the United Arab Emirates and in 2012 became the first Abu Dhabi company to list in London. The shares started teetering in mid-December when Muddy Waters alleged that NMC manipulated its balance sheet and inflated the prices of companies it acquired.

Shetty, 77, was born in India and founded NMC in the 1970s after moving to Abu Dhabi. His spokesman said a legal review of the situation is ongoing and declined further comment.

Chief Investment Officer Hani Buttikhi and board member Abdulrahman Basaddiq also stepped down because they were appointees of Shetty and Butti, NMC said, adding that they had no knowledge of the share transfers.

Questions remain over the role of Shetty’s family at the company. His wife and son-in-law both hold roles in senior management.

Almost 10 per cent of NMC’s freely traded shares are shorted, according to Markit Securities data. In mid-December about a third of them were.

Last week GKSD Investment, an investment company backed by hospital investors, said it’s studying a possible offer for NMC. Under U.K. takeover rules, it has until March 9 to make a bid.

NMC has said Muddy Waters’s claims are false and the company hired former FBI Director Louis Freeh to conduct an independent review. The review is due to be completed before the company issues its financial results in March, the person said.

NMC said Mark Tompkins will continue as the company’s sole chairman.

Bengaluru, Apr 28:  Karnataka Chief Minister B S Yediyurappa today launched a Helpline service for Kannadigas residing outside Karnataka.

On April 24, Dakshina Kannada district in-charge Minister Kota Srinivas Poojary in a letter to the Chief Minister requested a helpline for stranded Kannadigas in Mumbai, other States and other countries.

The helpline will help resolve the problem of stranded Kannadigas across the country. After a request is made, local authorities of the caller will be contacted to provide the required help. The helpline will be operated from Bengaluru and staffed with 50 employees in three shifts.

Bengaluru, Jan 25: Karnataka Health Minister B Sriramulu on Friday, hit out at JD(S) leader HD Kumaraswamy, accusing the former Chief Minister of pursuing "vote bank" politics and advised him to move to Pakistan.

"It is better to move to Pakistan...if he shows so much love towards Pakistan, why should he live in India? He should not do dual politics like this. He wants to be fair to Pakistan and also to India," Sriramulu said.

Terming it as "double standards", the Minister said: "From so many years, you have been doing vote bank politics. You have to understand one thing...you are the son of former Prime Minister and also a former Chief Minister. By giving these type of statements, I think it will hurt the citizens of India. If you want to do vote bank politics I must suggest that it is better to leave the country."

His statement comes after Kumaraswamy took a jibe at BJP over its "obsession with Pakistan".