Hindenburg Chronicles: The Role of ‘Operation Zeppelin’ in Adani Group's Remarkable Revival
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Synopsis
The Hindenburg saga showcases how 'Operation Zeppelin' enabled the Adani Group to counter a damaging report. Amidst a backdrop of financial turmoil, the conglomerate's strategic response reinvigorated investor confidence and challenged Hindenburg Research's credibility.
Key Takeaways
- Adani Group's resilience in the face of adversity.
- Operation Zeppelin as a strategic countermeasure.
- Impact of Hindenburg's report on market valuation.
- International political dynamics at play.
- Legal battles and investigations surrounding the case.
New Delhi, April 22 (NationPress) Hindenburg Research, which officially declared the cessation of its operations in January this year following a harsh yet ultimately unsuccessful assault on the Adani Group, witnessed a remarkable resurgence from one of India's leading conglomerates. This turnaround involved a covert investigation aimed at revealing the inner workings of the research firm and exposing its supporters.
In January 2023, the forensic financial firm released a blistering report branding the Adani Group as "the largest con in corporate history".
This attack resulted in a staggering loss of over $150 billion in the Group’s market valuation, forcing it to abandon its largest public offering.
The Hindenburg report surfaced just days before Adani Group Chairman Gautam Adani was in Israel to finalize a $1.2-billion agreement to purchase the Haifa seaport. The successful bid was made by a joint venture between Gadot Masofim for Chemicals Ltd and Adani Ports and Special Economic Zone Ltd, with the Indian entity holding the majority interest.
The entire process of bids, evaluations, and clearances for the privatization of Haifa Port spanned a lengthy 18 months, with Israeli Prime Minister Benjamin Netanyahu present at the signing on January 31, 2023.
As Hindenburg’s damning report about the Group was released, a senior Israeli official confronted Gautam Adani regarding the accusations, to which the Indian billionaire vehemently asserted that they were "absolute lies".
Sources close to the situation indicate that the Group mounted a formidable response against Hindenburg by initiating "Operation Zeppelin", which is believed to have received support from an Israeli intelligence agency.
This initiative comprised a combination of public relations strategies, legal maneuvers, and tactical responses to mitigate the repercussions and regain investor trust.
"Operation Zeppelin" was named after the German airships utilized for reconnaissance and bombardment during the First World War.
Members of the Israeli establishment perceived the Hindenburg report as a calculated attempt to sabotage the Haifa port deal, according to insiders.
The deal was considered strategically crucial for the India-Middle East-Europe Economic Corridor.
While the Adani Group redirected its focus to its core operations post-Hindenburg report, "Operation Zeppelin" continued its covert activities.
According to sources, former intelligence personnel managed to connect the dots, uncovering a complex network of activist lawyers, journalists, hedge funds, and political figures—some allegedly linked to Chinese interests, while others were associated with Washington power brokers.
Gautam Adani was informed about the clandestine operation during his private visit to Switzerland in January 2024, as per people familiar with the situation.
In Ahmedabad, a team of lawyers and intelligence advisors collaborated with those conducting surveillance in the US. A state-of-the-art control center was established, staffed by cyber experts and analysts, while legal teams operated across international capitals.
In 2024, leaked documents purportedly revealed connections between US agencies and media outlets promoting anti-Adani narratives.
Last November, the US Department of Justice and the Securities and Exchange Commission (SEC) indicted key Adani officials as part of an alleged bribery scheme to secure renewable energy contracts in India.
The Adani Group dismissed all allegations.
Concurrently, the Adani Group readied itself to initiate legal action against Hindenburg Research and its founder, Nathan Anderson, and a legal notice was dispatched. A meeting proposal between the Adani Group's legal representatives and Hindenburg officials was also made, although it remains unclear if the meeting occurred.
On January 15, Hindenburg Research announced its closure. This sudden decision caught many off guard, particularly due to its timing—just three days before Donald Trump’s inauguration as the next US President.
In the following months, substantial evidence emerged against the controversial short-seller Hindenburg Research and its founder, Anderson, during a court battle in Ontario, Canada, unveiling Hindenburg's clandestine connections and potential securities fraud along with improper disclosures made by the firm and its founder, according to media reports.
