Johannesburg — LIBERTY International's share price bounced over the past few days to its highest level since the end of April on news that two big property companies had bought into it.

The groups, Australia-based Westfield Group and Simon Property Group, the largest US investor in retail centres, built stakes of 3% and 4,22% respectively. The share moved on the possibility both companies, which have worked together before, might be warming up for a takeover bid.

Yet, if they were , buying a very small stake and announcing it to the world seems an odd way of going about it.

There are also doubts whether the two companies, even in concert, have the financial firepower to take over Liberty.

So why did the share price bounce so much?

The answer is short covering. Liberty is one of the most short-sold stocks on the London Stock Exchange with about 28,87% of its market cap on loan, apparently. When the news came through, the shorts had to jump, which made the share price do the same.

The Bottom Line is Edited By Edward West