Saputo falls after new short call from Spruce Point (update)

Update 3:20pm: Adds Saputo response to short report, updates shares.

• Saputo (TSX:SAP:CA) dropped 4.7% after a new short report from Spruce Point Capital management.
• Spruce Point issued a strong sell rating on Saputo and sees potential downside of 40%-60%. The report discusses what the firm describes as an "aggressive acquisition spree."
• Saputo said the short report is "without merit" and contains "mischaracterizations and incorrect information, which are misleading and solely intended to benefit the author," according to a statement. Saputo said that Spruce Point never engaged with the company.
• Saputo (SAP:CA) short interest is 1.5%.
• Saputo reported Q2 results earlier this month.