Nissan Share Rally Burns Traders in Asia’s Most-Shorted Carmaker
- It has 22% short interest as percentage of free float
- Shares have rallied after talks of merger with Honda
Short interest in Nissan surged to record highs this year as the shares of the troubled company sank on a huge profit slump, triggered by weak sales in the US and China.
Photographer: Kiyoshi Ota/BloombergIt’s been a painful week for traders betting against Nissan Motor Co., Asia’s most shorted automaker, as its shares soared more than 30% in two days after merger talks with stronger rival Honda Motor Co. emerged.
Short interest in Nissan as a percentage of its free float stood at 22% on Tuesday, a day before the news on the deal sent the stock jumping by the most in at least five decades, according to data from S&P Global. Honda is weighing several options, according to Executive Vice President Shinji Aoyama, which include a merger, a capital tie-up and even the formation of a holding company.