Nielsen's Largest Shareholder Opposes Sale

Nielsen Holdings has a new largest shareholder, a hedge fund that opposes a recent acquisition offer for the audience-ratings firm.

Barron's reports WindAcre Partnership paid $1.5 billion from April 6 through April 13 for a total of 31.6 million Nielsen shares , at an average price of $27.47, according to Securities and Exchange Commission filings. WindAcre now owns 91 million Nielsen shares, giving it a stake of 25.3%. 

The purchases make WindAcre the largest holder of Nielsen shares, topping Vanguard Group, which has 44.6 million, according to S&P Capital IQ.

On March 20, Nielsen rejected a takeover bid that valued the company at $25.40 a share. The offer was from a consortium that included Elliott Management and Brookfield Business Partners. 

WindAcre, a Nielsen shareholder since 2013, argued that the offer undervalued the company. “We believe strongly that the board made the right decision in the face of an inadequate offer,” WindAcre said in a statement after Nielsen rejected the bid. WindAcre contends that Nielsen is worth “well in excess of $40 per share.”

Less than 10 days later, the consortium sweetened its bid to $28, which Nielsen’s board accepted. However, WindAcre still opposed the deal, and said in an April 6 SEC filing that it “will take steps to attempt to block” it. WindAcre didn’t respond to a request from Barron’s for comment.