Herbalife Afterward Options Death - Hold Upwardly Iii: What Is Ubs's Game?
We right away know 1 of the the novel shareholders that Herbalife has after pick expiry. My count is that in that location are to a greater extent than novel in addition to large shareholders.
That shareholder of tape is UBS Group AG on behalf of itself in addition to its wholly owned subsidiary UBS Securities LLC, UBS AG London Branch in addition to UBS Financial Services Inc.
Note that this is UBS Group on behalf of banking concern in addition to trading companies in addition to non on behalf of their asset management companies.
Bluntly in that location is no fashion that the banks are asset that much Herbalife stock (over six percentage of the company) unhedged. That is non what banks do. [Even Michelle Celarier - a reliable Ackman shill - has tweeted that UBS holds it equally role of its marketplace position making.]
So UBS handle the stock in addition to they convey entered a full furnish swap or similar alongside closed to undisclosed party. I convey my guesses equally to who (but that is for a subsequently post).
And it probable that the stock they handle they convey inward turned lent to an investment banking concern (which I volition telephone weep upward Bank A) which wrote the seat options to Mr Ackman. Bank Influenza A virus subtype H5N1 needs to borrow the stock because they quest to last curt the stock for the role of hedging the options they wrote to Mr Ackman.
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The novel asset was disclosed nether dominion 13g which is alone for passive holdings. (Activist actions such equally trying to influence the board are prohibited if you lot file on 13g rather than 13d.)
However the nature of the filing neatly falls into a widely discussed whereby an activist investor who would commonly convey to reveal on flat 13d tin cover their identity. [See this article from Harvard police line weblog on activist abuse of Rule 13d.]
--
So what produce nosotros know.
(a). There is a novel shareholder.
(b). They convey gone to closed to lengths to cover their identity in addition to lucifer their asset into a loophole inward the disclosure rules.
Also when I count shares I mean value in that location is to a greater extent than than 1 novel shareholder. I dice on counting shares in addition to in that location is a missing large block.
Most novel shareholders would convey 10 days to disclose. I would grade the clock is ticking precisely my gauge is that the UBS swap understanding powerfulness final a few months.
John
That shareholder of tape is UBS Group AG on behalf of itself in addition to its wholly owned subsidiary UBS Securities LLC, UBS AG London Branch in addition to UBS Financial Services Inc.
Note that this is UBS Group on behalf of banking concern in addition to trading companies in addition to non on behalf of their asset management companies.
Bluntly in that location is no fashion that the banks are asset that much Herbalife stock (over six percentage of the company) unhedged. That is non what banks do. [Even Michelle Celarier - a reliable Ackman shill - has tweeted that UBS holds it equally role of its marketplace position making.]
So UBS handle the stock in addition to they convey entered a full furnish swap or similar alongside closed to undisclosed party. I convey my guesses equally to who (but that is for a subsequently post).
And it probable that the stock they handle they convey inward turned lent to an investment banking concern (which I volition telephone weep upward Bank A) which wrote the seat options to Mr Ackman. Bank Influenza A virus subtype H5N1 needs to borrow the stock because they quest to last curt the stock for the role of hedging the options they wrote to Mr Ackman.
--
The novel asset was disclosed nether dominion 13g which is alone for passive holdings. (Activist actions such equally trying to influence the board are prohibited if you lot file on 13g rather than 13d.)
However the nature of the filing neatly falls into a widely discussed whereby an activist investor who would commonly convey to reveal on flat 13d tin cover their identity. [See this article from Harvard police line weblog on activist abuse of Rule 13d.]
--
So what produce nosotros know.
(a). There is a novel shareholder.
(b). They convey gone to closed to lengths to cover their identity in addition to lucifer their asset into a loophole inward the disclosure rules.
Also when I count shares I mean value in that location is to a greater extent than than 1 novel shareholder. I dice on counting shares in addition to in that location is a missing large block.
Most novel shareholders would convey 10 days to disclose. I would grade the clock is ticking precisely my gauge is that the UBS swap understanding powerfulness final a few months.
John
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