Not necessarily there could have been profit taking with reversal of short positions all along the way with no net change in positions.
I only make the observation that ospraie held a significant number of shares what they did with them is anyones guess but there would have been no barriers to them being lent to other groups for the perpose of shorting.Hedge funds have been known to do that sort of thing.
There is for that matter nothing stopping red back from lending stock for the purpose of shorting.As you point out this would serve to drop the share price and manage a take over at more attractive prices.
I note today there are a large number of cross trades going on this also suggests some corporate action?
When I spoke to management about 4 weeks ago they indicated that at that time some of the selling was as a result of the selling of opes prime related holdings, I did not notice MDL on the list of shares held by anz bank so i'm not sure who was doing the selling at that time.The folding of ospraie and sale to red back occured after this.
I suspect the ongoing fall in the share price will significantly impair the options of MDL management to defend a takeover offer.
MDL Price at posting:
$1.62 Sentiment: Hold Disclosure: Held
