Unilever Share Discussion Threads

[essentialinvestor] 18/1/2022 10:03

Huge debt would also limit scope for investment in existing brands.

The rating agencies very probably downgrade their debt making financing more expensive.

Just a world of pain.


Unilever paid $1 bn for Dollar Shave Club back in 2016, value of that business
now, less than 0.

[nick100] 18/1/2022 09:50

this deal does not look like due diligence has been done, the more you look at this it is a bad deal for Unilever and its share holders

[muffinhead] 18/1/2022 09:49

The cure for inflation is more expensive debt... 2 year bonds going parabolic

[pugugly] 18/1/2022 09:43

From a GSK shareholder view - I like it - The proposed hive off by Emma of healthcare would leve the new unit with a heavy debt load in a significantly regulated market - Give me the cash anytime.

[panshanger1] 18/1/2022 09:26

Has Terry Smith had anything to say yet about the proposal ?

[clinton baptiste] 18/1/2022 09:25

Jope's a jock, amongst other things

[thruxie] 18/1/2022 09:21

Porsche you do understand the management team is multi-national and the CEO Dutch right?

[pander45] 18/1/2022 09:14

US open won't be pretty.

[porsche1945] 18/1/2022 09:07

Thinking Warren or nestle may go after this rubbish soon, I doubt this deal will go through but shares won’t recover due to failed acquisition and goon management. Somebody likely to pounce but takeout wouldn’t be at 40pc premium, institutions would let it go for low 40’s and be glad to see it gone. The only way out on this will be a takeover or this is back to 32 quid. Dire. Amazed at how well I called this. Altho general rule of course, just avoid U.K. stocks, they always have the ability to destroy your capital far quicker than you think, the companies are poorly managed, same as the shxtty U.K. government.

[essentialinvestor] 18/1/2022 09:07

It brings in to very sharp focus the competence and judgement of the top
team.

It also arguably raises questions about the quality and performance of the existing business.

Is the acquisition partly to provide cover for underperformance
in their existing brand portfolio, or more precisely expected underpermance over the next few years.

[acsatix] 18/1/2022 09:05

if Emma went to dragons Den and tried to sell this for 60Bn she would be laughed out of the Den :)

[acsatix] 18/1/2022 09:03

@lendmyafiver: I fully agree with you, the CEO has to run this ship well first... it looks to me he is looking for a way to conceal losses in a sea of goodwill impairments and restructuring and harmonization losses for the remainder of his tenure... to make his life easier...


I hate all of this and especially the implicit dilution of 9% the new shares issued for the deal imply!!!!(it is a clear dilution of us existing shareholders).


whichever way we look at it shelling out 60 B pounds on toothpaste and paracetamol and ibuprofen (BY the way the Tesco versions of the pills are just as good and 90% cheaper) is criminal - that is the main reason why Emma is unloading this !!

we will never see the money back in our lifetimes.

[montyhedge] 18/1/2022 09:00

Seems every analyst thinks this is a crazy deal and in the end will be paying to much.

[roguetraderuk] 18/1/2022 08:53

spoole. smaller deal might have been easier for market to accept with present ceo. its all about perception. and the present ceo just isnt trusted by the mkt given the "surprises" during his tenure.
personally think shrink to grow is best policy. any pe bid is likely to focus on the same, but then shareholders wont feel the full benefit, seeing only the takeout bid. shrink to grow by the board can release 100% of the value for shareholders. youll wait longer but youll get more hopefully in the long run.

[roguetraderuk] 18/1/2022 08:50

techs are putting it into freefall. ugly rolling top over last 4 years. on pure techs you are looking at 15 quid downside below 37 quid. thats pure tech, it would neeed a lot of fundamental value destruction to align with that. although the board is certainly doing its best in that regard :/
in the interim that 33xx area on the prior breakout will be an initial level of sup, then 30 quid.

[spoole5] 18/1/2022 08:50

It's the intent to pursue other deals of a similar size if this doesn't happen that's the problem

[bluemango] 18/1/2022 08:48

Crikey. 'Mr Market' seems a tad dissatisfied with management here atm

[pander45] 18/1/2022 08:44

He needs to communicate the silence is putting the company into free fall and making it a target.

[spoole5] 18/1/2022 08:42

10% off the company in 2 days. This could eventually be a blessing, these will be a sitting duck soon.

[nick100] 18/1/2022 08:41

How much does the board need know that this is not a popular deal.

[spoole5] 18/1/2022 08:38

The value destruction currently happening is criminal.

[kaffee] 18/1/2022 08:31

With 38 quid having been a 'loose' floor over the last 4years...and it now having gone... what are we looking at now, 33 ??

[onehanded] 18/1/2022 08:27

see that from brokers,

'the mark down in share price this early morning, could provide a buying opportunity for investors in the medium term. Any clues from the management team that the deal to buy the unit from GSK has been dropped in favour of buying smaller established companies, could see a rapid correction.'

[spoole5] 18/1/2022 08:26

Institutions need to start pressuring to remove this clown