NEW YORK (TheStreet) -- Shares of NQ Mobile (NQ) are down today following a tepid market reaction to the buyout offer from Bison Capital yesterday, suggesting investors are concerned about the risk of the deal not being completed, Bloomberg reports.
Short-seller Carson Block, who accused the company of overstating its revenue, thinks NQ Mobile is worth less than $1 a share and questions whether the investment firm is aware of the company's true worth, calling the Chinese firm's bid "way too high" on Bloomberg TV.
Yesterday, Bison Capital offered $490 million, or $9.80 per American depositary receipt, which represented a 41% premium on Tuesday's closing price of $6.90.
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Muddy Waters LLC., the research firm founded by Carson Block, said on October 24 that the Chinese mobile security company misrepresented cash balances.
Investors are still waiting to see NQ Mobile's audited 2013 annual report, but the company has twice delayed the filing since the end of April, Bloomberg noted.
Shares are down -7.12% to $6.91 today.
Separately, TheStreet Ratings team rates NQ MOBILE INC -ADR as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NQ MOBILE INC -ADR (NQ) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."