Sino-Forest's Largest Shareholder Paulson Jumps Ship

Summary


TORONTO (Reuters) - Billionaire hedge fund manager, the largest shareholder in Sino-Forest, sold his entire stake in the Chinese forestry company, and credit rating agency Fitch cut its debt rating on the firm to junk status.

The moves represent the latest in a string of setbacks for the Toronto-listed company, whose shares have collapsed in the wake ofby short-sellerthat it exaggerated the size of its forestry assets.

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Sino-Forest's Largest Shareholder Paulson Jumps Ship

Mr. Paulson, who made a fortune on a short bet against subprime mortgages, has been burned by the scandal. Sino-Forest has shed over C$4 billion ($4.1 billion) in market capitalization since the beginning of June.

"Due to the ...

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