Bass Associates Hold ‘Short’ Position in Disney Shares

Some investors associated with the Bass family of Texas have disclosed that they are holding a short position of 376,234 shares, or about 1%, of Walt Disney Productions, Dow Jones News Service reported Thursday.

(A so-called short position is created when an investor borrows shares and sells them, anticipating that the stock price may soon fall and a profit can be made by replacing the borrowed shares when the price is lower.)

The Bass group owns a controlling 23.3% of Disney’s 32.7 million shares, whose market price has declined by $3.50 a share this week after rising about $20 since Dec. 4.

However, contrary to its first report, the wire service said later in the day that no member of the group’s dominant Bass family itself is among those holding a short position in Disney’s stock.

The group’s filing with the Securities and Exchange Commission said its investors plan to deliver shares that they already hold to cover their short position in early January.

Some sources speculated that year-end tax considerations might be a factor for the Bass-affiliated investors.

Disney’s stock price had risen sharply this month until last Friday, reportedly fueled by market rumors of a possible sale of the firm’s cable operation, Disney Channel. The rise began with a jump of nearly $5 a share to $101.50 on Dec. 4. It continued rising, setting a 52-week high of $117.50 during last Friday’s session before closing at $113.50, up $3.375.

The company said the latest gain may have reflected last Wednesday’s announcement that Disney has agreed to build a European Disneyland near Paris.

Disney’s stock price dropped $1 on Monday, another $1.875 on Tuesday and 62.5 cents on Thursday to close at $110 in New York Stock Exchange composite trading.