Feb. 17 (Bloomberg) -- Vestas Wind Systems A/S, the world’s biggest wind turbine maker, rose the most in two weeks in Copenhagen trading as investors who had borrowed the stock and sold it on bets it would decline repurchased the shares to cover their so-called short positions.
Vestas jumped as much as 8.7 percent, the most since Feb. 3, making it today’s biggest winner in the Copenhagen 20 Index. The stock advanced 1.6 kroner to 54.60 kroner at 9:40 a.m. in the Danish capital. The Aarhus, Denmark-based company has lost 68 percent of its market value over the past 12 months after cutting sales and profit forecasts.
Short interest in Vestas reached a record-high 22.1 percent of shares outstanding on Feb. 15, according to the most recent figures available from Data Explorers. Most companies have about 3 percent short interest in their stock, according to Data Explorers. Vestas said yesterday it will propose Sony Ericsson Mobile Communications AB Chief Executive Officer Bert Nordberg as chairman when Bent Erik Carlsen steps down in March.
“The spike suggests a short-covering squeeze as some market players probably reacted after the share fell below 50 kroner yesterday,” Ole Kjaer Jensen, chief share trader at Sydbank A/S said by phone. “Maybe there’s also some delayed reaction to yesterday’s board member announcement.”
Vestas on Feb. 8 reported a bigger 2011 net loss than analysts had estimated and said last month it will cut 10 percent of its work force as Chinese competitors take market share.
--With assistance from Gelu Sulugiuc in Copenhagen. Editors: Tasneem Brogger, Jonas Bergman.
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