Heavily-shorted sandalwood grower Quintis has called in lawyers Herbert Smith Freehills and a financial adviser to defend the company should any takeover offers arrive.
Quintis surprised the market with news on Tuesday morning that long-term chief executive and its biggest shareholder Frank Wilson had resigned, as he considers working up a takeover bid for the company.
It's understood Wilson has retained Clayton Utz for advice.
The news is expected to be treated with scepticism among local hedge funds and on trading desks. Quintis - which was called TFS Corp until last week - is a heavily shorted stock, with 14 per cent of its issued equity in the hands of short sellers according to ASIC data.
The spotlight ramped up last week when US short-seller Glaucus Research published a detailed report saying the company's stock was worthless.
Quintis shares were up 10 per cent to $1.21 in early Tuesday trade.
Ann: Resignation of Managing Director, page-37
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