The top investor of Massimo Zanetti Beverage group said on Tuesday it would launch a takeover bid for the Italian coffee maker to delist the group as it wants to pursue a broader overhaul of the company.
Luckin Coffee Inc. (LK) – Get Report said Tuesday that it has received a formal delisting notice from the Nasdaq as the China-based rival to Starbucks (SBUX) – Get Report continues to suffer the fallout from its multi-million dollar ‘fake sales’ scandal.
At the time of publishing the first article, Luckin Coffee stock had already plummeted to around $4, and I thought shares would bounce back because of its liquidity position and the revival of the Chinese economy. The store count of around 4,500, I noted, is not fictitious. The trading ban on the stock was lifted on May 20, and after falling dramatically, shares are now trading above $6 in the pre-market session on June 8 at the time of writing this article.
The move underscores Nasdaq’s renewed focus on the auditing standards of companies on its bourse. This week it tightened its listings rules with an eye to curbing initial public offerings (IPOs) of Chinese companies that are closely held by insiders and are not transparent about their accounting, Reuters reported on Monday.