Hedge funds have increased their bets against TD Bank Group with short positions against the Canadian lender rising by 45% over the past two weeks to reach $6.1 billion on Wednesday, according to a report by Reuters.
The report cites calculations by data provider ORTEX, as revealing that around 5.5% of TD’s outstanding shares are out on loan to hedge funds betting against the company, while the second-most shorted bank stock, Bank of America, only has $2.9 billion, or 1.2%, worth of short bets.
Analysts are attributing the increase to TD’s planned acquisition of US lender First Horizon, which has drawn increased scrutiny following the collapse last month of Silicon Valley Bank and Signature Bank.
Some shareholders have urged TD to either negotiate a lower purchase price or drop the deal altogether. The bank is awaiting regulatory approval for the takeover and is expected to address the $13.4 billion deal at its AGM in Toronto on Thursday.
