Nielsen Board Rejects Takeover Bid, And Stock Price Takes A Hit

Nixes Bid

The stock market was unkind to NIELSEN HOLDINGS PLC in premarket trading MONDAY (3/21) after the company's Board of Directors rejected a $9 billion, $25.40/share takeover bid from an investment group led by ELLIOTT MANAGEMENT GROUP on SUNDAY (3/21). Shares dropped 17.55% in trading as of 8:15a (ET) to $20.15/share before the opening bell, blamed on the board's response to the offer, which said that another investment firm, WINDACRE PARTNERSHIP LLC, holder of 9.61% of NIELSEN plus an additional 14.44% through total return swaps, indicated that it would block ELLIOTT's bid by buying up enough shares to prevent shareholder approval.

The board's statement said that the consortium's bid "significantly undervalues the Company and does not adequately compensate shareholders for NIELSEN's growth prospects." Asserting that the company's value "is well in excess of current trading prices," the board said that it would proceed with its previously-approved $1 billion stock buyback after first quarter earnings are released.

"We continue to have strong confidence in the management team and NIELSEN's strategy to create long-term value for shareholders," said Chairperson JAMES A. ATTWOOD. "We are always open to exploring any avenue to create value for shareholders, but the Board is in agreement with WINDACRE, one of our largest shareholders, that the Consortium's proposal significantly undervalues the Company. Further reflecting our confidence in the Company, we plan to commence share repurchases, which we expect to be an important element of our ongoing balanced capital allocation strategy."

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