Man Group provided some much needed entertainment for bored City traders late yesterday as its shares charged to the top of the FTSE 100 leaderboard on talk of a bid approach from American investmentbank Merrill Lynch.
Shares in the hedge fund manager closed 35p stronger at pounds 14.52, a record high, as investors piled in after the rumours.
Analysts, however, were sceptical and said the story had probably been put about by traders seeking to force short sellers to buy back their positions.
Data published earlier this month by Crest, the share settlement system, showed that just under a fifth of Man’s shares were on loan to short sellers who make money by selling borrowed stock and buying it back at a lower price.
