The $265 billion target of a notorious activist hedge fund just announced $21 billion in share buybacks

Nestlé, the food and candy company that has been targeted by an $18 billion activist fund, says it will buy back roughly $21 billion of its shares.

In a statement, Nestlé said that the share buyback program of up to CHF 20 billion (roughly $21 billion) would be completed by the end of June 2020. The program is slated to start next week, on July 4.

"In the context of low interest rates and strong cash flow generation, share buybacks offer a viable option to create shareholder value," the company said.

Earlier this week, Third Point, a New York-based activist fund founded by Dan Loeb, announced that it was targeting the $265 billion Swiss company in its biggest bet yet. The fund had asked for Nestlé to engage in a round of share buybacks in conjunction with a formal leverage target.

Third Point raised $1 billion specifically for the Nestlé investment, creating the firm's first-ever special purpose vehicle, which has since closed, a person familiar with the situation earlier told Business Insider.

Third Point has been raising fresh money from investors since last year, an infrequent move for the fund, people familiar with the matter previously said.