Sino-Forest Corp. the Hong Kong- based tree-plantation owner that’s plunged 85 percent in two weeks, lost the support of its biggest shareholder after Paulson & Co. sold all its stock.

John Paulson’s New York-based hedge fund said in a regulatory filing on Monday that it sold all 34.7 million of its shares.

Sino-Forest has dropped to C$2.73 from C$18.21 in Canada after Carson Block, a short seller who runs Muddy Waters LLC, said June 2 that the company lied about its finances. That fall represents a loss in value of about $3.88 billion.

Canada’s Globe and Mail on Saturday cited unnamed Chinese officials saying that there were “inconsistencies” in the valuation of Sino-Forest’s holdings.

Source:

Bloomberg