I think the shorts already own the shares and therefore will receive the Tyche shares and will have to turn them over to the investors who bought the shares they shorted if the shorted shares are covered before the ex dividend date.
Perhaps you could ask your sources about that scenerio?
Nosey now I think I see the confusion here. You are talking about a naked short who never actually borowed the real shares in the first place not a legitimate short who borrowed real shares.
If you borrow real shares and hold them on 5-19-06 then you do get tyche shares (because you are the owner on record that day)and you would in theory have to also hand over those shares when you return the borrowed shares as opposed to pocketing the free tyche shares.
If you are a naked short then you dont really own shares and you dont really get Tyche shares on the 19th because you are not a real owner of record on that date. So of course it would be impossible to return something you never got.
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