Magnum Hunter’s #1 Stockholder Continues to Divest

Last month MDN told you about one of Magnum Hunter Resources’ (MHR) major investors dumping 6.3 million shares of MHR stock (see Magnum Hunter Investor Dumps 6.3 Million Shares of MHR Stock). We have new information and a much better understanding about that investor–Relational Investors. Relational is the hedge fund for a “kinder, gentler” corporate raider by the name of Ralph Witworth. In June Witworth and Relational owned 27.5 million shares of MHR stock. Today? 17.7 million shares–a 36% reduction in the past month. According to reports, Relational is not done yet. Relational is on the way to divesting ALL of their MHR stock holdings. But that’s not as ominous as it sounds. The reason Relational is divesting all MHR stock is because they are divesting all of their holdings in all stocks. Witworth has health issues (throat cancer) and Relational is divesting so it can relaunch under new management and, presumably, re-buy stocks in many of the positions they previously held. Will that include a re-purchase of MHR stock? Who knows. One thing is for sure, as we noted in our previous story in June, Relational is taking a bath by selling MHR at these super low prices. Another observation: with this much MHR stock coming on the market, prices for the stock will likely remain low for the foreseeable future…

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