Stocks in uncertainty-riddled Diamond Foods rose on rumours that investor David Einhorn has acquired a stake in the firm.
Shares hit a high of US$34.28 on Friday (30 December), up from $29.32 the previous day, following a CNBC report that quoted sources claiming Einhorn, who founded hedge fund Greenlight Capital, had bought shares.
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Spokespeople for Greenlight Capital and Diamond did not wish to comment on the rumours.
Diamond, which manufactures Emerald nuts and Kettle potato chips, has repeatedly hit the headlines over the past few months over an internal accounting probe into walnut payments, which has delayed its US$2.35bn acquisition of global snacks brand Pringles
Last month, the company admitted that it would miss a deadline to file its first-quarter results, leaving it open to censure from NASDAQ.
Soon after it announced the Stock Exchange Commission (SEC) had also begun to investigate the payments.
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By GlobalDataMeanwhile there is still uncertainty surrounding the death of director Joseph Silveira in October. CNBC reported his death as a suicide and that Silveira, a member of the snack maker’s audit committee, had recused himself from the investigation. Diamond insisted his death was not linked to the probe.
