Shorts are going to soon be about 10% of market cap lets say 200M
There has been a huge investment from ALB to underwrite the shortseller named hedgie X
Due diligence by ALB is complete and all is in order.
During the DD process HP started on market buying which has turned out for ALB a bad situation that arrived peice by peice, more bad after bad.
ALB has been led to the brink as they did not know what was going to happen next, and nor did we.
ALB had to keep funding for the short selling to hold LTR SP at 3.00 or below for the SOA
Heres the important penny drop Those shorts that ALB has funded has cost them bigtime if they walk away. Are they going to walk ?? Nope !! Either way walk or no walk if SOA is sucessful, ALB still has to find 600M to buy back on market @$3 to return to the rightful or ultimate owner.
A squeeze will eventuate as shares wont be avaliable at 3.00.
We and HP are now a tough Mob and wont let our shares go for anyone to cover.
ALBs only sane option is now to increase the offer as this will cost them less than the unknown and risky attempt of covering on market, or at a future agreed price for the total of shares outstanding with whoever the ALB contract to lend and borrow is with.
ALB will have to go higher and but can ALB do so because of the failure of the in leiu of better offer clause in ALBs 3$ offer attempt
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