Hedge funds are trading in and out of Koninklijke KPN N.V. (OTCMKTS:KKPNY) (AMS:KPN), the Netherlands-based telecommunication and IT company, reports JPM Prime Brokerage hedge fund trend monitor. The interest in Koninklijke KPN spiked after America Movil SAB de CV (NYSE:AMX) (NASDAQ:AMOV) bid $9.6 billion to buy the company. America Movil already has control over approximately 30 percent of KPN’s outstanding shares, and the new terms of the deal need approval by at least 50 percent of KPN’s shareholders.
Hedge funds buy Koninklijke KPN and Kabel Deutschland in August
A number of hedge funds used to have a short position in the Dutch company, including famous names like Davidson Kempner, Marhsall Wace, AQR Capital and others. However, these negative bets were covered well before this offer from America Movil SAB de CV (NYSE:AMX) (NASDAQ:AMOV) came to surface. Among hedge funds who have a long position in Koninklijke KPN N.V. (OTCMKTS:KKPNY) (AMS:KPN), the most notable is Odey Asset Management which own 10.8 million shares of the Dutch company as of July 31. The position amounts to 0.8 percent of the company.
Not surprisingly, the other foreign company that has been actively inciting interest of U.S. hedge funds in August was .Today European antitrust. Authorities approved the buyout of Kabel Deutschland, thus sealing the deal. Now, hedge funds including Elliott Management and Davidson Kempner are suing Vodafone to pay a higher price to acquire their held-out shares.
Short interest rising in Kone Corp and Banca Monte dei Paschi
The Prime Brokerage short interest radar noted increased shorting activity in KONE Corporation (HEL:KNEBV), a Finnish escalator maker. The report points out that short interest has more than doubled in August. We previously pointed out that China bears were putting negative bets in Kone due to its major exposure in the region. Viking Global has a 1.2 percent short position in the company.
Meanwhile, Italy’s troubled bank, Banca Monte dei Paschi di Siena SpA (BIT:BMPS), was also on the rise in the last month. So far, four hedge funds have disclosed short positions above 0.5 percent of Monte Paschi’s outstanding shares to the Italian authority, CONSOB. These include 0.5 percent short positions from Odey Asset Management, a 1.14 percent bet from Wellington Management Company, 1.4 percent from Egerton Capital and a 0.6 percent short position from Marshall Wace.
JPM’s report also notes that hedge funds who trade around convertible arbitrage saw increased borrow liquidity in Nokia and Alcatel Lucent as managers covered their short positions. In case of equity shorts, all hedge funds have now covered their negative bets in Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) after it announced the merger of its handset business with Microsoft. AQR Capital, OCH-ZIFF, Capstone Volatility Master Fund have active short positions in Alcatel Lucent SA (NYSE:ALU).
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