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UPDATE 1-Spain's Gowex says accounts accurate, to hire new auditor
July 2, 2014 / 6:50 PM / 3 years ago

UPDATE 1-Spain's Gowex says accounts accurate, to hire new auditor

(Adds Spanish stock market regulator statement)

MADRID, July 2 (Reuters) - Spanish wireless network provider Gowex on Wednesday said its accounts were accurate and it would soon hire new auditors after its shares dropped about 60 percent in two days on a report from Gotham City Research.

Gotham City Research posted a report on its website on Tuesday in which it questioned the company’s revenue reporting and the competence of its managers. Reuters was unable to determine the accuracy of Gotham City’s comments.

“The Company confirms that in 2013 it achieved revenues of 182.6 million euros ($249 million) ..., equity of 94.4 million euros, net cash position of 54.8 million euros and having accrued 10.5 million euros in income tax,” Gowex said in a statement.

“These figures have been verified by a chartered account auditor,” it added. The auditor that verified last year’s accounts was M.A. Auditores S.L.

Reuters could not reach anybody at M.A. Auditores S.L for comment.

Spain’s stock market regulator said in a statement late on Wednesday that it had asked the U.S. Securities and Exchange Commission (SEC) and the UK’s Financial Conduct Authority (FCA) to provide information about Gotham City Research LLC and its administrators in order to analyse whether the publication of its report could constitute a market abuse.

The Comision Nacional del Mercado de Valores (CNMV) also said it was reviewing recent trading in Gowex shares to check if there had been any breach of market rules.

Gowex, which confirmed its investment and job creation plans, also said it had requested the submission of tenders to several “prestigious” audit firms, which it plans to hire in the coming weeks. It declined to say which audit firms it contacted and why it would hire a new auditor.

U.S.-based Gotham City Research did not answer repeated requests for comment from Reuters. Reuters received an email on Wednesday signed by Gotham City Research in which it stood by its report. ($1 = 0.7331 Euros) (Reporting by Julien Toyer; Editing by Elaine Hardcastle and Keiron Henderson)

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