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.
Brazil became the first team to qualify for the World Cup on Tuesday after beating Paraguay to clinch an eighth consecutive victory as Argentina's campaign
Arsenal star Alexis Sanchez powered Chile to a 3-1 victory over Venezuela on Tuesday as the South American champions edged ahead of Argentina in the
United States coach Bruce Arena accused Panama of targeting teenage star Christian Pulisic after a rugged CONCACAF World Cup qualifying battle ended in a 1-1
Most Watched VideosView all posts
- It will take 170 years to achieve economic equality between women and men says the UN Deputy Secretary-General, Ms Amina Mohammed - The deputy UN
Couples Caught ‘Having Sex’ Side-by-side Against A Wall In A Town Centre
The wife of the president, Mrs Aisha Buhari, on Wednesday, March 8, donated fortified foods and baby kits to 600 nursing mothers in Borno. Buhari, who
There are indeed many talented chaps in Nigeria; these people are not only creative, some of them are intelligent too and have the ability to
Kyle and Jackie O's naked dating show contestants get intimate.
Most Read NewsView all posts
By Perez Brisibe & Ochuko Akuopha UGHELLI— FOLLOWING its takeover of Oil Mining Lease, OML 30 assets from the Nigeria Petroleum Development Company, NPDC, Managing Director
SENATOR Dino Melaye has undoubtedly come a long way in the legislature. His four year stint in the House of Representatives between 2007 and 2011
Former Coach of the Super Eagles, Chief Adegboye Onigbinde says there is no Nigerian football club that can truly qualify to be described as a
[embedded content] The hip-hop star's daughter, whom he had with his ex-wife, Kimberly Scott, is now 21-years-old and is a stunner. One could see her
Real Madrid’s Portuguese striker Cristiano Ronaldo was the best paid footballer in 2016-17, with 87.5 million euros ($95.3m) in earnings, ahead of his Argentinian rival
Most Watched Movies
Nigerian Movies 2016 Latest Full Movies This rural based drama is a very interesting movie on the gullibility of most villagers to the reality of
This movie is poignant and thought provoking offering a solidly crafted, well acted and a must see experience for the audience.In the movie, four blood
An interesting Nigerian Movies 2016 Latest Full Movies / African Movies. Left with her parents wealth, she marries Chuks who happens to be a spam,
Nigerian Movies 2017|latest nollywood movies| 2017 Nigerian movies A twin born lady who was born with a scar on her face which made her feel