Somebody large and sensible just exited Fortescue

From The Australian:

UBS has sold a $51m line of shares in the iron ore miner, Fortescue.

The trade was priced at $2.55 per share.

The sale of 20m shares has prompted speculation the seller was Russian investor, Magnitogorsk Iron and Steel.

As I said this morning, FMG should get approval for Vale JV but it is far less transformative that it appears. The FMG share price appears to be now trading in 100% correlation with the dubious iron ore rocket, from James Woods, Global Investment Analyst at Rivkin Securities:

Hence an exit at $2.55 for some clever Joe is a gift.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.