GREY:CLGRF - Post by User
Comment by
clestoron Feb 22, 2012 9:31am
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Post# 19565735
RE: RE: Realism
RE: RE: Realism Most of those short positions were SEM shareholders. When the SEM shares were converted to CRJ shares, the former SEM shareholders held simultaneous long and short positions of CRJ. Most likely their brokers simply collapsed the two positions . . . but some brokers have less robust corp action departments, so probably a bunch of accounts remain to be cleaned up.
This is typical merger arb trading and occurs with all acquisitions.