EML +10.53%: news reports started to come through overnight that a private equity outfit was looking at a takeover of EML. EML confirmed Bain Capital was eyeing a buyout of the prepaid cards business earlier in the year, to the point the company gave them an exclusive look at the books. That period wrapped up last month without a deal being struck and Bain has walked from the table at this point. It was seemingly a disappointing update, Bain essentially taking the view that it was too expensive to start with, however, the corporate interest sent shares higher today. EML had nearly 10% of the stock on issue short sold as at last Thursday, likely contributing to the squeeze higher today.
MM is bullish EML, expecting further unwind of the shorts near term
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