With hedge funds controlling an estimated 25 per cent of the LSE, the only thing every hedge fund manager seems to agree on is that Nasdaq’s £2.7bn hostile bid is unlikely to go through at the current £12.43 offer price. One estimated that short-termist hedge funds had only 10 to 12 per cent, with the rest willing to hold onto their shares in the hope of a higher share price as an independent company. But Nasdaq insists the share price will fall sharply if it walks away. London’s Centaurus is betting on just that — it has taken out an option to sell LSE shares at well below the offer price meaning it makes £30,000 for every penny the shares fall below £11.82. Another, Cheyne, sold its entire stake before Christmas.

This entry was posted by Helen Thomas on Wednesday, January 24th, 2007 at 5:16 and is filed under Hedge funds, M&A. Tagged with centaurus, cheyne, lse, nasdaq. Edit this entry.