The Independent has reported that hedge funds have been buying London Stock Exchange shares at prices higher than its 12.43-a-share takeover offer. Cheyne Capital Management reportedly informed the stock exchange it had purchased 2.279 million shares at 1,274.5p, equalling just over a 1 percent stake.
Cheyne has reportedly been a successful hedge fund operator and its managers are said to have shared pay of 75m for nine months’ work.
GLG has taken out long positions over 400,000 shares at 12.72 and 12.75. Hedge funds buying at prices higher than the final offer does not look good for the Nasdaq, as they will actively resist selling for a loss.