Hedge funds nurse heavy losses after UPS-TNT deal collapses - Reuters
United Parcel Service's decision to abandon its 5.2 billion euro bid for TNT Express has left hedge funds nursing potential losses of more than $700 million, as the Dutch delivery firm's shares slid.
So-called merger arbitrage funds - which make money betting on the outcomes of corporate events including takeovers - are estimated to have owned around 30 percent of TNT shares before Monday's news European anti-trust regulators would veto it, several sources familiar with the sector said.
Funds had been buying shares in TNT ever since UPS (UPS.N) made a 5.2 billion euro play for the company last February.
United Parcel Service's decision to abandon its 5.2 billion euro bid for TNT Express has left hedge funds nursing potential losses of more than $700 million, as the Dutch delivery firm's shares slid.
So-called merger arbitrage funds - which make money betting on the outcomes of corporate events including takeovers - are estimated to have owned around 30 percent of TNT shares before Monday's news European anti-trust regulators would veto it, several sources familiar with the sector said.
Funds had been buying shares in TNT ever since UPS (UPS.N) made a 5.2 billion euro play for the company last February.
