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i apologise..

September 05, 2008

Harbinger caught up in FMG short selling
US hedge fund Harbinger Capital Partners has reportedly been connected to the short selling of shares in iron ore miner Fortescue Metals Group, an issue that has plagued the company’s share price over the past 2 months.

In an announcement to the Australian Securities Exchange, FMG advised that some 10% of the company’s shares have been subject of stock loans.

FMG, which didn’t name the shareholder, said that the stock loans were made by the owner’s custodian and the owner had since advised the company that it would immediately rectify the situation.

According to a report in the Australian Financial Review, the shareholder in question is Mr Phil Falcone backed Harbinger Capital Partners. The newspaper said that Harbinger’s custodian had lent the USD 2 billion worth of shares to other investors, who sold the FMG shares in the hope they could buy them back at a lower share price, without Harbinger’s knowledge.

FMG's southbound share movement has been linked to short sellers, with broker Southern Cross telling clients FMG had been subject to an aggressive and coordinated shorting campaign from a high of USD 13.15. However, it remained a mystery how short sellers could get their hands on the company’s shares given the top 20 shareholders, who own 91% of its stock, were long term FMG investors.

<blockquote data-quote="agro" data-source="post: 331667" data-attributes="member: 13477">i apologise..September 05, 2008Harbinger caught up in FMG short selling US hedge fund Harbinger Capital Partners has reportedly been connected to the short selling of shares in iron ore miner Fortescue Metals Group, an issue that has plagued the company’s share price over the past 2 months.In an announcement to the Australian Securities Exchange, FMG advised that some 10% of the company’s shares have been subject of stock loans.FMG, which didn’t name the shareholder, said that the stock loans were made by the owner’s custodian and the owner had since advised the company that it would immediately rectify the situation.According to a report in the Australian Financial Review, the shareholder in question is Mr Phil Falcone backed Harbinger Capital Partners. The newspaper said that Harbinger’s custodian had lent the USD 2 billion worth of shares to other investors, who sold the FMG shares in the hope they could buy them back at a lower share price, without Harbinger’s knowledge.FMG&#039;s southbound share movement has been linked to short sellers, with broker Southern Cross telling clients FMG had been subject to an aggressive and coordinated shorting campaign from a high of USD 13.15. However, it remained a mystery how short sellers could get their hands on the company’s shares given the top 20 shareholders, who own 91% of its stock, were long term FMG investors.</blockquote>

[QUOTE="agro, post: 331667, member: 13477"] i apologise.. September 05, 2008 Harbinger caught up in FMG short selling US hedge fund Harbinger Capital Partners has reportedly been connected to the short selling of shares in iron ore miner Fortescue Metals Group, an issue that has plagued the company’s share price over the past 2 months. In an announcement to the Australian Securities Exchange, FMG advised that some 10% of the company’s shares have been subject of stock loans. FMG, which didn’t name the shareholder, said that the stock loans were made by the owner’s custodian and the owner had since advised the company that it would immediately rectify the situation. According to a report in the Australian Financial Review, the shareholder in question is Mr Phil Falcone backed Harbinger Capital Partners. The newspaper said that Harbinger’s custodian had lent the USD 2 billion worth of shares to other investors, [B]who sold the FMG shares in the hope they could buy them back at a lower share price, without Harbinger’s knowledge.[/B] FMG's southbound share movement has been linked to short sellers, with broker Southern Cross telling clients FMG had been subject to an aggressive and coordinated shorting campaign from a high of USD 13.15. However, it remained a mystery how short sellers could get their hands on the company’s shares given the top 20 shareholders, who own 91% of its stock, were long term FMG investors. [/QUOTE]

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