Whitehaven Hoax Plunges Stocks

A hoax press release has caused the Whitehaven Coal stocks to plummet, wiping off more than $314 million worth of stock value. Anti-coal activist Jonathan Moylan, the man behind the hoax, said his actions were justified.

The fake press release said ANZ has withdrawn its loan to Whitehaven Coal. The $1.2 billion budget was earmarked for the development of the Maules Creek Coal Project. The alleged withdrawal of financial support is because of the global coal market’s volatility, cost blowouts and in adherence to the bank’s corporate social responsibility.

The hoax resulted into the shares of Whitehaven tumbling down 31 cents or close to nine percent. By midday, share price dropped from $3.52 to $3.21. When news spread that the press release was a hoax, share price bounced to $3.32 before trading was halted at 1 PM.

At the end of trading day, share price has closed at $3.525.

Whitehaven was quick to dismiss the hoax as it issued a statement to Australian Stock Exchange, saying there was no substance to the fake press release. ANZ also issued a statement, saying the loan is still in place.

The hoax was elaborate as the press release showed the ANZ logo. A phone number was also included and attributed to ANZ staff member Toby Kent. Moylan, however, was the one who answered phone calls and pretended to be Kent.

Several journalists are believed to have contacted the phone number and spoke with Moylan. Impersonating Kent, Moylan said he represents ANZ and “confirmed” that the bank is reviewing its investments.