Davidson Kempner is one of a number of hedge funds and private equity firms that have taken short positions against corrugated and paper packaging specialist Smurfit Kappa, following the announcement of a proposed deal to acquire US paper company WestRock, according to a report by the Business Post.
The report cites Central Bank filings as revealing that between 21 September and 26 October, four firms in total took out short positions equal to 3.5% of Smufit Kappa’s shares.
The largest position (1.2%) is held by Davidson Kempner European Partners, while fellow hedge funds Magnetar Capital Partners and Pentwater Capital Management, have short positions worth 0.98% and 0.63% respectively.
The fourth company named in the filings is private equity firm Alpine Associates Management which has short position worth 0.72% pop Smurfit Kappa’s stock.
The short positions were all reported shortly after Smurfit Kappa announced its intention to acquire WestRock for the equivalent of $43.51 per share in cash and stock, with some analysts subsequently voicing concerns over the purchase price.
Smurfit Kappa’s share price has struggled since the deal was announced and is now down 11.7% YTD.
