Banca Italease and JC Flowers

U.S private equity fund JC Flowers & Co is thought to be interested in acquiring the Italian leasing and factoring company Banca Italease Spa (BIL), said Forbes said this morning. BIL's share price hit a two-year low on April 12th at 5.1EUR, and it has since rebounded to 7EUR per share, potentially because the whiff of a private equity rumour started to spread amongst investors.

There has been a general increase in borrowing BIL in the past 8 - 9 months, and in last August the company had 1.7% of its Market Cap out on Loan to Short Investors as opposed to 6% last month. Unsurprisingly, shorts are now being covered and this figure has dropped to 3.5%. There are only 0.99 Days to Cover for those investors who believe that now is the time to buy back shares and take profits.