DLS 0.00% 69.0¢ drillsearch energy limited

Stock often gets borrowed,like in this case,not for the purposes...

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  1. 683 Posts.
    Stock often gets borrowed,like in this case,not for the purposes of short selling, but for the purpose of having an element of control in the event of a takeover.Just because UBS have borrowed stock, it doesn't nessesarily mean they are going to use it to sell short.If you borrow the stock,you also get the right to vote at extraordinary general meetings etc on things such as takeovers, and a 5% stake such as UBS have here would give them a strong seat at the table in the event of a T/O bid. This is just another indicator that the sharks are circling DLS
 
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