CORRECTED-LIVE MARKETS-Short sellers up bets on European bank M&A targets; Commerzbank, MPS in focus
Fixes 7th paragraph to show MPS is seen as a takeover target, but UniCredit has shown interest in BPM not MPS
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SHORT SELLERS UP BETS ON EUROPEAN BANK M&A TARGETS; COMMERZBANK, MPS IN FOCUS
European bank M&A seems to be good news for the securities lending industry, as short sellers like to bet against target companies.
Perhaps that's not the most significant aspect of the endless discussions of European banking consolidation - which never seem to reach a conclusion - but it is one takeaway from data from S&P Global Market Intelligence published Friday.
They found that Germany's Commerzbank had 5.78% of its shares on loan to short sellers by the end of last year, up more than 460 basis points compared to the end of the third quarter, making it the third most lent banking stock in Europe.
The German lender's shares jumped in September, when news broke that Italy's UniCredit had amassed a sizable stake in Commerzbank and said it wished to acquire its rival.
So far the deal, which is broadly unpopular in Germany, remains in limbo, but Commerzbank's shares, while volatile, remain elevated and around 25% above their August lows.
Short sellers also borrowed 5.2% of Monte dei Paschi's shares as of Dec. 31, an increase of more than 500 basis points since the end of the third quarter.
MPS is also seen as a takeover target, potentially by Italy's third-largest lender Banco BPM, though this is complicated by UniCredit also being interested in BPM.
The most shorted bank however remains Sweden's Svenska Handelsbanken AB, SHBa.ST or to be specific its class B shares. SHBbSEK.xbo
(Alun John)
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EARLIER LIVE MARKETS POSTS
YEN INTERVENTION RETURNS TO 2025 BINGO CARD CLICK HERE
INSURERS AND LUXURY CLICK HERE
EUROPE BEFORE THE BELL EQUITY INVESTORS WATCH BONDS CLICK HERE
MORNING BID: LOOMING PAYROLLS KEEP BOND BEARS HUNGRY CLICK HERE
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