WindAcre Partnership Master Fund, a major owner of Nielsen Holdings (NLSN), has been buying up shares in recent days. Last week, the company bought over 23 million shares, increasing its holdings to 91,074,000 shares in total.
That’s following an earlier buy for just over 31.5 million shares in April. All told, the fund now owns just over 25 percent of the company, and has become the largest shareholder.
The buys have occurred as Nielsen has agreed to be bought out by a consortium of private equity players, after first rejecting a lower offer earlier in the year. WindAcre opposes the acquisition offer for the company, which records audience ratings.
Shares of Neilsen are up about 8 percent over the past year. Earnings surged 511 percent last year, even as revenue grew by less than 3 percent. The company sports a 27.5 percent profit margin, and is a leader in its niche space.
Action to take: Shares could stand to further gain if WindAcre is able to get the potential buyers to pay even higher. However, it’s also possible that opposition to the deal causes the buyout offer to go away, which could send shares down in the short term. With shares near a one-year high but under a five-year high, there’s likely some upside ahead, but not much.
For traders, shares may not move much in either direction unless there’s a change in the status quo. The August $30 calls, which have a bid/ask spread of about $1.30, could benefit from any change that leads share prices higher.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.