Aug. 8 at 12:58 PM
$BHF Brighthouse Financial (BHF) fell 2.1% amid a report about potential accounting issues with the company's
$4 .1 billion sale to Aquarian Holdings.
The accounting issues are related to an affiliate called Brighthouse Reinsurance Company of Delaware, according to traders, who cited a Capitol Forum that was circulating on Friday.
There's concern in the deal agreement that the buyer doesn't need to put in more capital than the business plan calls for and that regulators will agree to let potentially dubious accounting practices continue, according to the report.
Brighthouse (BHF) and Aquarian didn't immediately respond to Seeking Alpha's email request for comment.
Under the terms of the deal, Brighthouse holders will receive
$70.00 in cash per share. Brighthouse has a short interest of 9.3%.
