By Sam Boughedda
Investing.com -- Nielsen Holdings PLC (NYSE:NLSN) shares fell around 18% Monday after it decided to reject a proposal from a private equity Consortium that valued the company at $25.40 per share.
Reports last week revealed Elliott Management was part of a private-equity group in advanced discussions to acquire Nielsen for around $15 billion, including debt.
Nielsen said it made the decision to reject the proposal after a comprehensive review and discussions with The WindAcre Partnership, which has around a 10% stake in the company.
WindAcre spoke with the Consortium about the possibility of joining. However, following the discussions, it decided not to join, adding that it would oppose the transaction as it "views Nielsen's intrinsic value to be significantly higher than values proposed by the Consortium."
WindAcre was prepared to work to prevent shareholder approval of the transaction.
"Nielsen's Board unanimously determined that the Consortium's offer significantly undervalues the Company and does not adequately compensate shareholders for Nielsen's growth prospects," Nielsen said in a statement.
In addition, Nielsen said it plans to start share repurchases under its previously approved $1 billion share repurchase program. The company intends to begin share repurchases when its trading window opens, which is expected after the first quarter of 2022 earnings planned for April 21.