Hedge funds nurse heavy losses after UPS-TNT deal collapses

Discussion in 'The Latest UPS Headlines' started by cheryl, Jan 15, 2013.

  1. cheryl

    cheryl I started this. Staff Member

    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.