recently, the stock market in the concept of marriage story hanging the appetite of investors. However, after the "sweet" or "distressed", once again shrouded in clouds short takes stock market.
announced after the merger with Ctrip, where the network’s share price rose by more than 10% in the short term, but then began to slow down. More dangerous is that a large number of short investors began to short the stock. Bloomberg and Markit jointly compiled data show that last week where the number of shares was short of the stock market accounted for more than 1/5 of the company’s outstanding shares, the company hit a record price ratio since the listing.
in accordance with the previous share exchange agreement, Baidu will have passed before completion of the transaction where the network of class a common stock and class B common shares of Ctrip into additional ordinary shares, stock replacement ratio of the deal is every where the network of American depositary receipts can be converted into Ctrip 0.725 American depositary receipts, after the merger Ctrip where the network will have 45% of the total voting shares, Baidu will have about 25% of ctrip. In fact, where the relationship between the network and Ctrip management team was tense. In June this year, where the network CEO Zhuang Chenchao has refused to accept the offer from ctrip. Some analysts said that after the merger of investors where the network management team began to doubt the loyalty, which of course, will affect the growth of the company.
in addition to where the network, the stock market leading Alibaba has become one of the objectives of the market short. According to overseas media reports, the Wall Street bear master, Kynikos Associates founder Chanos said investors should be short Alibaba group. In addition to the bearish Alibaba, Chanos also recommended investors to buy rival Alibaba shares of Jingdong, Alibaba as a short hedge. Affected by this, Alibaba shares on Friday after the stock fell more than 5%, then narrowed down to 2.1%, Jingdong’s share price rose nearly 3%.
in more than a year ago, Chanos has said that the pharmaceutical company is short Valeant, he believes that debt driven mergers and acquisitions and stock prices rose and can not continue. Chanos then attacked Valeant for mergers and acquisitions to take radical accounting strategy, and cover up the true performance of the situation. Today, Valeant’s share price plunge is believed to be the symbol of the collapse of the U.S. biomedical myth, the company’s share price has hit the lowest level in two years.
also on Friday, Alibaba group and Youku potatoes group announced that the two sides have signed a merger agreement on the acquisition of Youku potatoes. According to the agreement, the transaction will be in full cash purchase price per share of American Depositary Shares Youku potatoes $27.6, compared to the previous offer price per share high of $1, the transaction is expected to be completed in the first quarter of 2016 delivery.
with privatization, in fact, from the beginning of 2010, a large number of stock companies have had the experience of being short, some companies have subsequently become a number of law firms class action >