Unilever Share Discussion Threads

[maywillow] 19/3/2017 15:56

William Turvill
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Unilever is behind brands including Flora, Stork and Marmite (Source: Unilever)

Unilever is exploring the sale of some of its most iconic brands after coming under shareholder pressure over a $143bn takeover bid from Kraft Heinz.

Paul Polman, the FTSE 100 firm’s chief executive, is drawing up cost-cutting and restructuring plans, which could lead to the sale of its margarine and spreads business.

The division, comprising Flora, Stork and I Can’t Believe It’s Not Butter among other brands, was moved into a subsidiary business in December 2014.

Read more: Will fortune favour brave Bob Diamond's Panmure takeover?

Unilever was already preparing a strategic review, but this is understood to have been accelerated by the unsolicited approach from Kraft Heinz.

The US food giant, backed by Warren Buffett, said it has “amicably agreed” to abandon its proposed deal just two days after news of the talks emerged. Unilever had rejected the bid.

A survey by broker Bernstein, published last week, found that investor support for Unilever’s response was split. The report said: “50 per cent supported management’s aggressive rejection (which contributed to Kraft Heinz’s withdrawal), while 50 per cent wanted Unilever to engage with Kraft Heinz”.

The Sunday Times first reported that Kraft Heinz would be one of the most likely bidders for Unilever’s spreads business. Private equity firms such as Advent International and Carlyle could also be attracted to the business.

Read more: Business needs clarity on the Prime Minister's takeover plan

Last month, shortly after the Kraft Heinz deal fell through, Unilever issued a statement pledging to shake-up its business.

The Anglo-Dutch company said: “Unilever is conducting a comprehensive review of options available to accelerate delivery of value for the benefit of our shareholders. The events of the last week have highlighted the need to capture more quickly the value we see in Unilever.”

In January, before the Kraft Heinz approach, Polman was quoted as saying: “As long as we continue to generate more value as owners of this business than we would receive from any other options, we should continue to manage this business and protect our value.”

[konil] 11/3/2017 06:20

in play now, so either they demonstrate return of value to shareholders in near term as a result of their review or another bid inevitable?

[spacecake] 10/3/2017 21:25

or just getting warmed up ?

[woolybanana] 10/3/2017 09:37

Seriously overvalued now??

[cutlosses] 09/3/2017 16:49

Broken through £40 today ! Thanks Mr Buffet.

[loftus16] 22/2/2017 18:33

Well that's shaken them up a bit. No bad thing to keep them on their toes. LLOY and UBM pretty good today as well and a few others.

[redips2] 22/2/2017 16:54

Silver = ford, trade up to Porsche = gold.... maybe !

[mozy123] 22/2/2017 16:37

Well i hope they dont sell any family silver.

[spoole5] 22/2/2017 16:05

Back to the bid level.

[woolybanana] 22/2/2017 15:53

A bit of a shake up won't do them any harm; remember that their spreads division is hardly worthwhile nowadays. If they manage to get a decent price for it and then buy something that is a decent fit with their other interests, so much the better, no?

[redips2] 22/2/2017 15:20

They may be selling, they may be buying, or both..... lets just wait and see .

[mozy123] 22/2/2017 14:54

Smells like a brand sale.

Smells like panic and suprised they even want to do any sort of transaction. Unilever should be buying brands not flogging them off

[bluemango] 22/2/2017 14:09

Presumably you've all seen the further update, subsequent to post 356 above, and mentioning core margins expected at upper end of guidance?

[spoole5] 22/2/2017 14:00

Now almost back at last Friday's levels. Cheers Warren!

[csmwssk12hu] 22/2/2017 13:15

I don't like that statement, one thing with unilever is it doesn't panic and this smells of panic, someone needs to let management know buffet and co will never get his hands in this, UK and Dutch wouldn't let them

[loftus16] 20/2/2017 14:20

Zero. Buffett carefully protects his well deserved good reputation which was in danger of becoming tarnished by this adventure.

[konil] 20/2/2017 13:56

any chance kraft will come back with better offer?

[spoole5] 20/2/2017 13:53

Was hoping to top up at 32. Oh well maybe next week.

[a0148009] 20/2/2017 11:37

So it is forgot that, makes it more interesting!

AO

[leedskier] 20/2/2017 11:22

It is a public holiday in the US today.

[a0148009] 20/2/2017 10:56

Will be interesting to see what influence NY has on the price on their opening, with the leaks I guess they would be long.
AO

[jimbowen30] 20/2/2017 09:19

Eisler
I don't really care whether Unilever is £30 or £40 tomorrow. It's the value in 5-10 years that I'm focused on