The $23 takeover offer for JBM closed on 22 Feb with Xtrata moving to compulsory acquisition. 28th was the last day of trading.
But look at the chart. Why would JBM be trading above $23 for the last few days?
Trembling Hand
29th-February-2008, 12:42 PM
Just a wild guess. Option writers and shorts needing to cover any hedges & short positions before the the stock stop trading.
In the states when a stock declares bankruptcy you often see it jump from worthless to a bit more than worthless just because of shorts covering. Maybe something of the same.
Ferret
1st-March-2008, 01:33 PM
I suspect you're right, Trembling Hand, and it is to do with short positions.
But I don't understand why people would have these open positions that ended up costing them money. The offer went unconditional a while ago. No reason for the price to be very far from the bid price after that. That gave people with shorts plenty of time to cover them at close to the bid price.
