Feb 17, 2017

Trading in Unilever leapt ahead of Kraft Heinz bid

Traders in the options market made large and unusual speculative investments in Unilever shares in the days before Kraft Heinz revealed a takeover bid for its rival, prompting renewed focus on suspicious trading ahead of takeover offers becoming public. Trading volumes in short-dated call options in Unilever's US-listed shares jumped on Wednesday to the highest level since 2011, ahead of news of Kraft Heinz's offer on Friday that sent shares in the Anglo-Dutch company surging. Such trades will "Prompt the SEC or DoJ to go and see who was behind the trade and their trading history", he said. "Unusually high option volume was seen in Unilever options and Kraft Heinz beginning Wednesday." Jim Strugger, head of derivatives products at MKM said that it was common to see suspicious activity in options trading ahead of takeover activity.

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