Short sellers are betting against Metro Bank, ahead of a vote tomorrow by share holders on a £925m rescue plan, according to a report by Daily Mail.
According to the report, 6.4% of Metro’s shares are on loan to hedge funds led by Caius and Kite Lake Capital, making the bank the most ‘shorted’ stock on the London market after online retailer Asos. Share values for the bank have crashed significantly, with it being valued at 40p per share now (in comparison to a 4000p valuation five years ago).
The rescue plan would hand control of the bank to Jaime Gilinski, a Colombian billionaire who is willing to put up £102m, raising his stake to 52.9%
The report also noted that Metro has warned it may be deemed unviable by the Bank of England and put into a process for managing failed banks called resolution if the funding package is rejected.
