The Daily Telegraph – The three hedge funds that have been the most active buyers of P&O shares in recent weeks are continuing to bet the Port of Singapore Authority may trump DP World’s 520p-a-share bid.
Eton Park Capital Management, which has disclosed 33.3m of share purchases during the offer period and has built a P&O stake of more than 5pc, has bought 4.25m shares in two tranches at 542p and 543lp.
Since DP World launched its initial 443p-a-share bid in November, Eton’s average buying price has been 490p. It stands to make pounds 10m profits if the deal goes through at 520p, but would double that if the PSA came back at around 550p.
Allowing for the 5.5m shares Eton owned before it breached 1pc, its profit at 520p could be nearer pounds 15m.
Roughly 20pc of P&O’s stock is now in the hands of hedge funds. Two others – Sandell Asset Management, with 2.74pc of P&O, and Tisbury Capital, with 1.97pc -have also been buying stock above 520p, with Sandells buying another 2.58m shares and Tisbury a further 1.9m.
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