BUZZ-Telit: falls on placing to fund more acquisitions

** Internet of things (Frankfurt: 7IT.F - news) company Telit falls 2.2 pct after it raises £39 million through a share sale to fund M&A

** Co issues an additional 11.6 mln shares at 340p, 10 pct of Telit's existing share capital, with CEO Oozi Cats saying the money will be spent on M&A in its loss-making IoT services division

** In March 2016 the company said it planned to dial down M&A and begin scaling the business

** Telit's use of share sales and debt to fund acquisitions has been a major factor in making the company the most shorted stock on London's AIM index

** Four hedge funds have positions totalling 9.2 pct of the company's shares, down slightly from a record high of 11 pct in March

** Despite short interest the stock is still well-liked by the sell-side, with all four analysts rating a "buy"

** Analysts at Canaccord upped their price target to 390p from 355p on April 26