The short-seller targeting Trevi gets a slap in the face from the takeover bid
As luck would have it, the Guevoura fund increased its short position in Trevi shares on 16 June, bringing its short positions to 2.44 per cent of the share capital
Another clash on the Milan Stock Exchange: Trevi’s board is already up in arms. The board of Trevi Finanziaria has announced that it has commenced the necessary procedures regarding the voluntary public exchange offer launched by Friuli-based Icop for all the shares, following the announcement issued by Icop on 28 June. The board’s position – set out in an official statement – is clear: the offer ‘was in no way solicited, nor was it discussed or agreed in advance’ with Icop. Trevifin also states that it ‘will formally express its position within the timeframe and in accordance with the procedures laid down by law’, but the board has already unanimously noted that the transaction “does not reflect the value creation strategy undertaken nor the Company’s future prospects, as outlined in the 2026–2029 business plan”. Trevi operates – just like Icop – in the field of underground engineering. In short, the board of directors at Trevi believes that the offer – which sparked a surge in the share price, causing it to jump by 11 per cent on Monday and rise a further 5.27 per cent on Wednesday – does not reflect the group’s future value. It remains to be seen how this will play out. It should be noted, however, that following the recent rise in the share price, the company’s market capitalisation now stands at 277 million, approximately 59 times the net profit forecast for 2026 by financial analysts and more than its book value.
The bears on the counter-attack
To be sure, however, the offer is causing a great deal of discontent even outside the board of directors: as luck would have it, on 16 June the Guevoura fund increased its bearish position on Trevi shares, bringing its short positions to 2.44 per cent of the share capital. In short, for the Guevoura fund, Trevi was not even worth the €3.50 it was trading at on 16 June, whereas today the company is valued at over €4.23 per share. For the time being, the fund has been proven wrong. Guevoura is, in any case, in good company: Millennium Capital holds a short position covering over 4 per cent of the share capital (admittedly, it did not have the misfortune of placing its bet just a few hours before the offer), and in total, the short positions disclosed on Trevi shares represent over 8 per cent of the share capital.
