Corporate Travel Management Ltd (ASX:CTD) has been granted a trading halt from the ASX to review and respond to a second report from activist fund VGI Partners.
The company said it became aware of the 52-page report prepared by VGI Partners last night and its initial view is that the report raises no substantive new issues.
Corporate Travel noted that it would be unable to fully review the report and provide a comprehensive response before market open today and hence requested the trading halt.
VGI issued its original report early last week
VGI Partners issued its original report just over a week ago, which was a 176-page powerpoint presentation raising 20 concerns it had with Corporate Travel’s business.
Corporate Travel entered a trading halt last week and held an investor call to address the original report's concerns raised last week.
Speaking at the company’s AGM last week, Corporate Travel’s chairman Tony Bellas said: “The board acknowledges two issues, one of which relates to the need for the company to keep its website updated with its office locations.
“The second relates to not using the term ‘patented’ in relation to its proprietary technology.
“In the board’s opinion, the rest of the report either misunderstands or misrepresents the company’s financial performance, governance and business model.
“The detailed response issued by us this morning comprehensively addresses all of VGI’s issues.”
VGI Partners disclosed short interest
Upon issuing the original report, VGI Partners disclosed that it had a short position in Corporate Travel of over 2 million shares meaning it stands to profit from a decreasing share price.
Since the release of the initial VGI report, Corporate Travel’s share price has dropped from $27.64 to a low of $19.20.
Shares last traded at $20.00 before being halted this morning.
