Munich-based Wirecard, founded in 1999, was established with the intention of assisting websites with credit card payment collections from customers.
In the past week, the company has witnessed a spectacular fall from grace amid a massive accounting scandal, its former CEO’s arrest, and an insolvency filing.
But can fintech rivals benefit from its downfall? One analyst says that it is possible.
Wirecard is “beyond salvageable,” Neil Campling, Head of TMT Research at Mirabaud Securities said.
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German fintech group Wirecard became one of the hottest European stocks while battling endless allegations of fraud.
The former-CEO Markus Braun claimed a clean sheet for the company until as recently as May 17 when he tweeted: “When all the noise and dust settles, Wirecard will still be a company that generates a billion Euro of EBITDA this year and is one of the fastest growing in its industry.”
The allegations intensified when the company claimed €1.9 billion from its balance sheet probably never existed, and Braun was arrested. Wirecard filed for insolvency on Thursday, ending a dizzying few days for the scandal-hit company.
When the company’s shares dropped by nearly 90%, it would have been easy for hedge funds with short positions to …read more
Source:: Businessinsider – Finance