Hedge funds nurse heavy losses after UPS-TNT deal collapses

Reuters – United Parcel Service’s decision to abandon its 5.2 billion euro ($6.9 billion) bid for TNT Express has left hedge funds nursing potential losses of more than $700 million, as the Dutch delivery firm’s shares slid.

So-called merger arbitrage funds – which make money betting on the outcomes of corporate events including takeovers – are estimated to have owned around 30 percent of TNT shares before Monday’s news European anti-trust regulators would veto it, several sources familiar with the sector said.

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