Poseidon stakeholder sells $7m of shares

Hedge fund manager RAB Special Situations has reduced its stake in Poseidon Nickel by over 6 per cent after selling some $7 million worth of shares.

In notices to the Australian Securities Exchange, the London-based RAB Special Situations (Master) Fund reported it had sold 5 million Poseidon shares for $6.96 million in July last year.

In a separate notice, RAB also reported it had reduced its shareholding in Poseidon by 7.3 million shares through a series of transactions between February and August last year.

As a result, RAB's interest was reduced to 7.1 per cent, down from 13.28 per cent.

The Cayman Islands-registered RAB suffered substantial losses last year after taking a speculative bet on the now government-owned UK bank Northern Rock.

Shares in Poseidon closed up 2.5 cents to 39.5c today.