Australian investment and asset management group Babcock & Brown blamed unidentified short sellers after its share price plunged more than a quarter today, triggering a potential review of a A$2.8bn (€1.7bn) debt facility it agreed with lenders less than three months ago.

Babcock’s shares ended Australian trading today at A$6.90 after dropping 28% from yesterday’s A$9.52 close. Shares in the group have more than halved from their A$14.21 closing price on March 27, the day the group announced the renewal of the loan facility with 25 banks including Australia's four majors.