Thomas Cook attracts short-sellers including Whitebox Advisors - report
23 APR 2019
Thomas Cook [LON:TCG] a UK-based travel company, has attracted short-sellers including Whitebox Advisors, The Daily Telegraphreported. The newspaper did not cite a source for the information.
News last weekend that several parties are interested in buying Thomas Cook or some of its businesses could prompt a “short squeeze,” the report said. Expectations of a bid battle for Thomas Cook may push the company’s share price up, which would force short-sellers to close out positions, which would prompt a further increase in Thomas Cook’s share price, the item explained.
Whitebox has a 0.81% short position in Thomas Cook, which is worth about GBP 3m (EUR 3.46m), the report said.
A Sky News report on 21 April said the China-based leisure group Fosun International [HKG:0656] had indicated interest in Thomas Cook’s tour operating business, while analysts cited by the newspaper suggested that buyout groups such as Kohlberg Kravis Roberts & Co [NYSE:KKR] and EQT could be interested in Thomas Cook.
Neither Thomas Cook nor Whitebox replied when asked for comment, the report said.
Thomas Cook’s market capitalisation stood at GBP 376m at the close of trading in London on Thursday, 18 April.
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