On Friday, Kraft-Heinz confirmed that it had approached Unilever about a $143 billion merger in what would be one of the largest M&A deals ever.
This followed a Financial Times post breaking the news early on Friday that Unilever had been approached to create one of the world's largest consumer goods companies. Unilever and Kraft, however, subsequently said the offer had been rejected.
Recent options trading in Unilever, however, has raised some eyebrows as a spike in upside bets started a few days before the deal was announced.
According to data collected by Bloomberg, 10,909 call options were traded on Wednesday, February 15, the most since 2011. Essentially, these are contracts that give an investor a right to buy Unilever stock specified price at a specified time. Call options are typically thought of as a bet the stock will go up, since a trader profits if the stock goes above the option price.
Essentially, these are contracts that give an investor a right to buy Unilever stock at a specified price at a specified time. Call options are typically thought of as a bet the stock will go up, since a trader profits if the stock goes above the option price.
According to the Bloomberg data, this was the highest number of bullish bets on Unilever's stock since 2011. Additionally, put options — basically, the opposite bet on the stock falling — only traded 232 times on Wednesday.
On Wednesday, most of the calls bought were for $40 and $45 strike prices with the expiration date of March 17. According to the company's Kraft's offer was for $50 a share for Unilever, so the bets are already profitable as Unilever shares are up 10% near $47 on Friday.
The pattern wasn't confined to Wednesday either, 5,186 call options traded on Thursday, February 16 in the US versus just 31 put options.
Unilever closed at $42.57 a share on Thursday.
Apple has announced that its new $5 billion (£4 billion) campus will be open to employees starting in April. The Silicon Valley tech giant said it
It looks like you won't have to run to the theater to see the long-awaited reunion of Martin Scorsese and Robert De Niro. Their next collaboration,
Gov. Yahaya Bello of Kogi on Tuesday said that following the technical defeat of the Boko Haram insurgency in the North-East, its fleeing members had
Most Watched VideosView all posts
Nigerians Take Buhari's Case To Yoruba Shrine, Spiritually Nails His Heart, Eyes To Tree [WATCH VIDEO]
Nigerians are uncontrollably angry, the want their president, Muhammadu Buhari to die by any means possible as they claim to have suffered a lot within
The federal government says it has perfected plans to establish a national social register for poor and vulnerable Nigerians The register will be established through the
President Muhammadu Buhari has rejected the recommendation by the Senate that he should sack Secretary to the Government of the Federation (SGF) Engr. David Babachir
The mother of a Boko Haram member has spoken on her experiences and how she currently feels about the actions of her son. Boko Haram members Her
This woman has no chill!…Just settle down to watch this video;
Most Read NewsView all posts
Pensioners from the 16 local governments in Kwara on Monday said they had begun a seven-day fasting and prayers for God’s intervention over unpaid N7bn
A fully-loaded luxury bus plunged into owode river on Owode/Ikorodu road. Three person were feared dead, many rescued from the Owode river. The luxury bus said
Apple is changing the way it works with its lead advertising agency TBWA\Media Arts Lab as part of an effort to streamline its global marketing
Prescription drug misuse is the intentional or unintentional use of medication without prescription, in a way other than as prescribed or for pleasurable reasons. Drug misuse
As Nigeria commemorates World Day of Social Justice, legal practitioners, specialising in labour matters, have condemned prevailing unfair practices in the workplaces. Some of the lawyers
Garba Shehu has argued that had the PDP remained in power after 2015, the dreaded Boko Haram sect would have taken over Aso Rock Presidential spokesperson,
Most Watched Movies
A king is under pressure from the ruling council of the land to produce a male heir. He succeeds in meeting their demands only for
This highly comical movie encapsulates a very gripping family drama laced with a beautiful suspense.In this movie,an enormous family complication has interestingly found its way
How crazy a man can get by killing his best friend for his mistress.. watch as the story unfolds! Starring; Rita Dominic, Ashley Nwosu, Patience Ozokwor,
Tobe whose eye was so blinded by his quest for wealth. His Anger and wrath took him to dangerous place where he even had to
A young woman(Chika Ike)suffered alot with her kids due to the curse that was placed on her by her supposed husband(clem ohameze)one of her daughter