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- Unilever Plc (NYSE:UL) is facing investor backlash over its £50B ($68B) offer for GlaxoSmithKline's (NYSE:GSK) consumer business. Unilever shares fell 7% in London, while GSK rose 4.1%.
- One unidentified top-20 Unilever (UL) told the Financial Times that he's against the deal and would vote against it.
- GSK and Pfizer Inc. (NYSE:PFE), which owns a 32% stake in the consumer health business, are waiting for a better offer from Unilever. Unilever has negotiated with banks about securing additional financing for a sweetened offer for the consumer unit, Bloomberg reported over the weekend.
- “Please be assured, Unilever will not overpay for any asset, particularly in the context where GSK consumer health is a very attractive option in the consumer health space," Alan Jope, Unilever’s chief executive said, according to the FT report. "But it’s not the only option."
- Unilever said it would maintain "financial discipline" including maintaining an A-band credit rating, the company said in a statement.
- Also see SA contributor Ellsworth Research's piece entitled "Unilever: Caution Reflected In Lagging Returns."