market

Ken Griffin's Citadel behind sudden drop in Tiffany shares – NY Post


The New York-based jeweler shares’ dip below $110 last week, or 19% less than the $135-per-share price that LVMH agreed to pay for Tiffany (NYSE:TIF), resulted from Ken Griffith’s Citadel lnvestment selling a major position in the retailer, the New York Post reports, citing insiders.

The drop in Tiffany’s shares had fueled speculation that its deal with LVMH was in trouble amid the coronavirus outbreak. That prompted LVMH to issue a statement that it was interested in buying Tiffany shares in the open market before its deal closed.

Citadel’s Surveyor Capital fund liquidated the position after reportedly losing the head of its merger arbitrage desk, Maulin Shah, after he made a bad bet on the Sprint-T-Mobile merger.

Arbitrage traders told the Post that it’s standard practice for a fund to liquidate positions left by departing trader who was most knowledgeable about the reasoning behind them.

Previously: Tiffany rallies on indications LVMH merger is on (March 19)





READ SOURCE

READ  Virgin Money chiefs give up bonuses worth £1m in response to coronavirus crisis

Leave a Reply