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SFX share price increases after Sillerman responds to bankruptcy claims
By Andy Malt | Published on Friday 10 October 2014
Up, down, up, down, who knows where SFX Entertainment’s share price will go next? There was a sharp fall earlier this week, following claims that the EDM festival maker was on the verge of bankruptcy. Though prices rose again following assurances by CEO Robert Sillerman that this was not the case.
The fall came after the publication of an article on the Seeking Alpha financial website on Wednesday, claiming that the company is “misrepresenting itself”, and that Sillerman has not bought shares in SFX since its IPO, which doesn’t suggest confidence in the company.
But a number of investors came to the company’s defence following the appearance of the article – one calling it a “hit job” – while Sillerman himself responded with a press release yesterday announcing that he had in fact purchased 575,000 shares in SFX, with plans to buy another three million after the company’s Q3 earnings announcement next month.
As a result, the share price began to rise again, though is still lower than pre-Seeking Alpha article levels.
