Hedge funds reject Petrofac's £1.1bn deal
Oilfield services group Petrofac is the company with the largest short position on the London Stock Exchange, despite winning a crucial £1.1 billion contract.
Hedge funds – which stand to make money if the company's share price falls – have shorted almost 10 percent of Petrofac's shares.
The company traded at a record low earlier this month after warning it was in financial trouble and was exploring options – including selling assets – to shore up its books.
Heading for a decline?: Hedge funds have shorted nearly 10 percent of Petrofac's shares
It has managed to obtain a guarantee that allows an advance to be paid for a large contract with a Dutch customer, causing its share price to skyrocket.
The group has indicated that it expects a smaller loss in the current financial year.
However, hedge funds appear skeptical about its longer-term prospects and have continued to bet against the company.