Infant formula maker a2 Milk Company shares rocketed 13% Monday after speculation that Nestle is considering a takeover of a2 Milk, closing at $6.68. The a2 share price has been volatile for some time, with prices down two-thirds over six months. The ASX declined to comment on any pending price query but said when sudden price movements were recorded, it would issue a query asking if the market was fully informed. A2 Milk declined to comment on the share price movements, saying it won’t discuss rumours.  

A2 Milk shares is among top 10 shorted stock with 6.57% of its register shorted according to an industry website. There was speculation that the large price jump for a2 shares recorded Monday was ‘short covering’ with a number of funds being squeezed. A2 milk shares were under pressure in late July due to increased regulatory risk, and with the Chinese government making it increasingly difficult for product to access the market, consolidation would seem to be on the cards.