afr - petrochina circles karoon, page-4

I believe the shorts got wind of the potential rights issue and shorted it in anticipation... What I think they missed was that the rights issue was only a backup plan for if the sale of browse didn't go ahead.

We now have woodside looking more closely at browse, and this has likely pushed negotiations out. We then ofcourse have cononco who will have a final say.

It's a complicated deal, but it's clear the asset is important. All comes down to valuation now.

Bottom line, shorts traded on bad information and deserve to get burned. I still find it hard to beeline that people short a company which trades at .5 book and has no debt. This will be an expensive lesson for them.