ITV and major shareholders what am I missing ?

6th May '20 by The Phoenix

2 comments 545 reads

Just noticed this rns about Goldman holding tad over 20% of voting rights through cfd's https://www.investegate.co.uk/itv-plc/itv/holding-s--in-company/202005061400031505M/?fe=1&utm_source=FE%20Investegate%20Alerts&utm_medium=Email&utm_content=Announcement%20Alert%20Mail&utm_campaign=ITV%20PLC%20Alert

They don't however appear on the top ten holders list on the stock report so just trying to get my head round how they can control 20% of the voting rights but only physically hold 0.11% of the company.

What is the benefit of them going this route other than buying the physical stock I'm guessing they don't have to put up as much money to buy cfd's as the contract only has a limited life period but I'm no expert in this area.

Any light shedding and logic would be appreciated.

Regards

Andy

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Howard Gilbert

6th May '20

I don’t understand it either Andy, but its good for us small investors who are in ITV and the Big Boy’s perhaps validate our decision that there is value in the plc and attract other followers thus putting the volumes up and helping our shares to rise.

But although I understand how CFDs work I haven’t a clue on Goldman’s tactics here? What are the impacts if they let the contracts lapse or take them up. I am sure one of the clever folk on here can guide us on the potential risks from such actions.

Actually isn’t there an AGM for ITV this Friday? Maybe they want to put someone on the Board or get rid of someone? Or exert some influence.

Clever people we need your expertise please.

Howard

Silver Moon

I think you might be right at that, plus there's the ability to influence the direction of the share price. Downwards preferably to the Shorter.

ITV and major shareholders what am I missing ?

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The Phoenix

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