A hedge fund manager on a heavy selling binge forced Delphi Automotive plc’s initial public offering last week, and economic conditions may open the door for more Delphi investors to exit as the European debt crisis looms.
The supplier’s IPO last Thursday priced out at the low range of $22 a share, raising $527.3 million.
Now based in Kent, England, Delphi’s operational headquarters and top executives remain in Troy. The supplier was incorporated in England in 2009 by the investors that brought it out of bankruptcy.
Last week’s IPO happened at the behest of billionaire hedge fund manager John Paulson, who runs a $28 billion fund under New York-based Paulson & Co.
Paulson sold 80 percent of the available stocks in the IPO, reducing his stake in the company from 22 percent to 15.8 percent. Paulson is cutting risk by selling off millions of stocks in investments, including Delphi, after his funds lost 44 percent in value this year, investment publication The Street reported last week.