A hedge fund took a net short position in IDS as the £3.6 billion takeover by Daniel Kretinsky faced regulatory and governmental scrutiny, with talks planned with business secretary Kemi Badenoch.
Royal Mail owner International Distributions Services PLC (LSE:IDS) has reportedly been targeted by ‘short-selling’ Wall Street hedge fund Sessa Capital.
It effectively sees Sessa betting against the proposed board-recommended takeover by Czech billionaire Daniel Kretinsky’s.
The £3.6 billion takeover is already facing regulatory and governmental scrutiny, heightened by the current general election campaigning.
It is meanwhile reported that Kretinsky is set to meet with the UK's business secretary Kemi Badenoch to discuss the deal, whilst the government is expected to review the takeover under the National Security and Investment Act.
The matter could be further complicated should Labour win the election as, notably, the trade unions have been critical of the proposed deal.
Sessa Capital has a net short position equating to 0.83% of IDS’ shares.
