Unilver Launches Strategic Review After Rejecting Kraft Heinz Deal
February 22 2017 - 9:22AM
Dow Jones News
By Ian Walker
LONDON--Consumer goods group Unilever PLC on Wednesday said it
was embarking on "comprehensive" review to wring out more value for
shareholders, just days after rejecting a $143 billion offer from
Kraft Heinz Co.
The Anglo-Dutch group, which houses the Dove, Marmite and Lipton
brands, said the review will be completed in April.
"The events of the last week have highlighted the need to
capture more quickly the value we see in Unilever," it said.
On Sunday, Kraft dropped its offer for Unilever a little more
than 48 hours after making an audacious bid to combine two of the
world's biggest packaged-food companies.
Kraft's withdrawal came after Unilever spent the previous 10
days telling its suitor that the deal didn't make strategic sense
given the companies' different business models, a person familiar
with the matter said at the time. Kraft's interest became public on
Friday.
Unilever argued its growth prospects lie in part with investing
in its home and personal-care offerings, a business Kraft doesn't
have, this person said. Kraft, meanwhile, has been focused on
cutting costs to boost earnings.
Saabira Chaudhuri and
Ben Dummett
contributed to this article.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
February 22, 2017 09:07 ET (14:07 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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