Apollo's Rackspace deal is crushing short-sellers

ServersFlickr/AlexA few server racks with the disks and switches.

Apollo Global Management just took Rackspace, one of the most heavily shorted stocks, private.

The cloud services company is being acquired for $32 per share in a $4.3 billion deal, which, as Business Insider reporter Akin Oyedele notes, is a 6% premium above Thursday’s closing price.

So Rackspace’s move to go private is harsh news for a number of its short-sellers. The short float on the stock was 12.7% as of August 15, according to Bloomberg data. And it’s in the top 100 of stocks that are being sold short, according to data tracker FinViz.

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