HedgeCo.Net (New York) – Hedge funds with hopes for a takeover of U.K. food equipment maker Enodis fell as the company rejected another buyout request, but some hegde funds have used the slumpin the share price to lift their holdings by buying more of the struck company.
Hedge fund Polygon disclosed it has a 5.5% stake in Enodis. It took Wednesday’s share fall as an opportunity to buy contracts for differences on 2.3 million shares, The 7.8 million shares it held Tuesday have gone from a market value of 17 million to 12.8 million pounds.
Enodis’ shareholder base, which is estimated to be about 40% hedge funds, is likely to put pressure on the company to unlock some value.
Following the termination of takeover talks with Manitowoc Co., Enodis said it had declined a request from Middleby Corp for greater access to its books. Enodis said it also rejected a request from Middleby for an extension to a Monday deadline from the U.K. Takeover Panel to make a firm offer.
Brokers said the share moves have left dozens of hedge funds down on their positions, with little prospect of Middleby making a bid that will be acceptable to Enodis.
Alex Akesson
Contributing Writer
HedgeCo.Net
Email: Editor@hedgeco.net
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