MSN MoneyCentral – Hedge funds have increased their holdings in the London Stock Exchange in the past week at prices that show they anticipate a higher offer from Nasdaq or another buyer before adeal is consummated.
DE Shaw, Halcyon Asset Management, and Chesapeake Partners Management have all increased their holdings in the LSE at prices above the £11.75 Nasdaq paid Threadneedle Investments and Scottish Widows when it bought a 15 per cent stake in the LSE last week.
In a regulatory filing, DE Shaw said it had increased its holding to 3.73 per cent from 3.36 per cent through the purchase of 910,000 swaps and swaps on call options at £11.84. Halcyon increased its holding to 1.95 per cent from 1.21 per cent with the purchase of 1.88m contracts for differences at £11.86. Chesapeake, new to the LSE story, took a 1.11 per cent stake on 12 April by buying 845,000 CFDs, also at £11.86.
These three hedge funds alone now control nearly 7 per cent of the LSE, with the total held by hedge funds seen around 20 per cent.
