Hedge Fund Buys Prezzo

American Hedge Fund Elliott Buys Stake in Prezzo

Elliott Management, an activist hedge fund, continues to grow its business with the acquisition of 3.1 percent stake in Prezzo, a chain of Italian restaurants in the United Kingdom, which is being bought by private equity firm TPG.
The activist fund on Friday disclosed that it had built a near 3.1pc interest in Prezzo via contracts for difference. The position was taken on Thursday, the same day that Prezzo agreed to be acquired in a deal that some think undervalues the company.
The price of the contracts is 124p and, given TPG has offered 126½p a share for Prezzo, Elliott may simply be taking advantage of the spread, one observer said, adding that it is unlikely, but, possible that the fund has other intentions.
TPG has the support of 62pc of shareholders and so needs to persuade another 13pc of investors to agree the acquisition. Prezzo shares were unchanged at 124¼p. An Elliott spokesman declined to comment.
More broadly, the benchmark FTSE 100 closed up 16.09 points to 6,567.24. The index ran as high as 6,608 during the session but lost ground after traders picked up on reports that Russian tanks had crossed the into eastern Ukraine.
Source: The Telegraph

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