Reuters – Hedge funds are buzzing around Glencore’s (GLEN.L) bumper $41 billion (26 billion pounds) takeover of miner Xstrata (XTA.L) after a lean year for European M&A, but are finding their usual bets tricky in the face of the eye-watering cost of shorting Glencore’s shares.
After a lull in European M&A deals in 2011, merger arbitrage managers are licking their lips at the prospect of a tie-up, which will see Glencore pay 2.8 shares for each Xstrata share and which has already met some shareholder opposition.
