AA (AA.) has come under further attack from short-sellers, after generating more negative headlines. Institutional investors have short positions in at least 12.5 per cent of the motor services provider’s shares, up from 8.5 per cent a month ago. That made it the third most shorted stock in London at the time of writing.
Part of the reason for this most recent bout of short-selling is former executive chairman Bob McKenzie’s decision to file a High Court claim against the group, citing wrongful dismissal. Mr McKenzie was dismissed from the company in August for gross misconduct, concerning an altercation with another member of management. The AA says it was "astonished" to receive the claim following its leak to the press, and says it will "vigorously contest" it.
