LCII targeted in $2.5bn Monomoy takeover bid with 10% of float sold short

Monomoy Capital Management proposed to acquire LCI Industries for $2.5 billion on 28 October 2026. LCI is the target in the deal, which has not yet closed or been confirmed as agreed by both parties.

Short sellers hold 10.1% of LCI's free float, with 2.36 million shares shorted and 6.4 days to cover. In a takeover, shorts face a defined ceiling on the stock price if a deal closes at a fixed price, but any gap between the current price and bid price creates risk for those still short. The cost to borrow sits at 0.51% annually, a relatively loose market. ORTEX's Index Rebalance Radar forecasts an 84% probability of deletion from the Russell 2000 and Russell 3000 at their next reconstitution, with a separate 81% probability of removal from the CRSP US Small index, events that would trigger an estimated $73 million in selling from index trackers if confirmed.