Tullow stake building reversed
A stake in Tullow Oil valued at almost €150m has changed hands twice in a matter of days.
The more than 5pc shareholding in the Anglo-Irish oil explorer held for an unknown investor by JP Morgan was originally declared to the market on Wednesday after passing the 3pc, 4pc and 5pc thresholds. It prompted speculation a potentially bigger stake building was underway.
Yesterday, however, JP Morgan said the stake had dropped down through all of the thresholds that require holders to declare their interests.
Tullow Oil, with a market capitalisation of £2.6bn (€3bn), owns stakes in two prized assets - the huge TEN and Jubilee oil fields off the west coast of Africa.
The JP Morgan shares were held via cash-settled equity swaps, instruments that can be used by firms to acquire stakes in target companies without having to reveal their own identity.
The swaps can also be used to reverse so called "shorts" - bets on falling share prices.