Float will drop by 30% after tender - what will the shorts do?
There will be 30% fewer shares to short after the tender. A lot of shorts will have to cover because of lack of availability of shares. In the short term, that will be a huge force pushing the price up. The shorts who don't cover before tender expiration are making a colossal mistake.
It is not only Cerberus with 30% but other funds are buying huge. So far BlackRock is reported 6.4%, State Street Corp and State Street Bank reported 8% and 6% and Vanguard reported 6.1% with 13G filing.
There are more and as they go above 5% then they have to file 13G.