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After felling China-focused Canadian forestry company Sino-Forest Corp. with an report alleging fraud earlier this year, noted short-seller Carson Block has turned his attention to another Chinese target: Focus Media Holding Ltd.

The company, with a market cap of some US$3.5-billion before Monday and listed on the Nasdaq as an ADR, is a digital media advertising company that uses LCD screen advertising. The company claims to operate more than 170,000 screens in 90 cities across China.

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Mr. Block, in an 80-page report Monday, described Focus Media as “The Olympus of China,” accusing the company of overstating its LCD panel network by 50%, significantly and deliberately overpaying for acquisitions, and claiming to acquire, write down and sell companies it never actually purchased.“Investors should be concerned about to where cash actually moved in these transactions, and about the integrity of reported results,” the report said. “The US$1.1-billion in write-downs from its acquisitions exceed one-third of Focus Media’s enterprise value, making Focus Media’s acquisitive behaviour more destructive than Olympus’s to shareholder value.”