Greenlight Capital Declines Comment on Diamond Foods (DMND) Rumor

Read into this what you want, but Greenlight Capital has declined to comment to StreetInsider.com on rumors it has taken a stake in Diamond Foods, Inc. (Nasdaq: DMND).

Shares of the embattled snack food maker have risen 14 percent over the past two sessions on rumors David Einhorn's hedge fund is now involved with the company.

For those who have not been following the drama at Diamond: shares have been more than halved after the takeover of Procter & Gamble's (NYSE: PG) Pringles brand was delayed after the accounting of strange payments to walnut growers prompted an investigation.

Here is Greenlight’s official response:

Greenlight Capital declines to comment.

While rumors of this fashion (hedge fund X takes stake in ABC) often prove to be false, the action in the stock suggests otherwise. At the minimum it has shorts running for cover.

Shares of Diamond Foods are currently up 9.5 percent to $32.19.

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