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This failed acquisition, Jopes general hopelessness even by dog index of the world standard ftse 100, should put Ulvr in play as a takeover target. Plz come back Warren, shareholders will pull his hand off at 45 quid a share, this is a company in terminal decline, its a break up/acquisition job and this debacle and weak sterling ( thank brexit fiasco ) makes it a cheapish buy for foreign money. Watch this space.
Good results ulvr india
https://uk.investing.com/news/stock-market-news/hindustan-unilever-logs-168-rise-in-thirdquarter-profit-2566221
That my opportunistic purchase the other day might get up to £3.90, or have you crippled this in a masterful re-rating? Anyway it’s bonus time for the boys.
So, all eyes on the FY results!
'ECB's Lagarde: Inflation drivers will ease gradually in 2022'. I expect ULVR will settle nerves. Mine anyway after this week :-)
https://www.reuters.com/world/europe/ecbs-lagarde-inflation-drivers-will-ease-gradually-2022-2022-01-20/
bounce back swiftly, its a much loved banker stock.
Hi Toff.
Bottle I guess.
But with Jope & Pitkelthy at the wheel caution ruled the day for me.
Alan Jope is having a week to forget. On Saturday Unilever’s chief executive confirmed he wanted to buy GlaxoSmithKline’s consumer health unit, which makes Advil headache pills and
Sensodyne toothpaste. On Wednesday evening he ruled out raising his 50 billion pound (60 billion euro) offer, which the drug giant has rejected. That leaves the maker of Vaseline and
Domestos toilet cleaner in a worse position than it started.
Jope had little choice but to walk away https://www.unilever.com/news/press-and-media/press-releases/2022/unilever-update-19-january-2022 shareholders had knocked 11% off the company’s share price in two days. They should therefore be relieved that he will not overpay for a business which has historically delivered a much slower growth than the 4-6% rate GSK Chief Executive Emma
Walmsley thinks it can achieve.
Yet the company lacks an obvious Plan B. Jope could attempt a takeover of 45-billion-pound rival Reckitt Benckiser , which owns Nurofen painkillers and a fast-growing sexual health business. But shareholders may be reluctant to support a massive acquisition when Unilever’s existing businesses are underperforming. Underlying sales volumes across all its units were lower in the third quarter of 2021 than in the same period of 2020.
Unilever will reveal more details of its revamp when it reports full-year results next month. Conceptually the plan to rotate into faster-growing product categories such as health and hygiene makes sense. It’s also consistent with recent acquisitions in beauty and skincare and the sale of Unilever’s margarine and tea businesses.
But Jope’s fumbled lunge ... for the GSK unit has raised the question of whether Unilever is the best owner for brands like Hellmann’s mayonnaise and Magnum ice cream.
Jefferies analysts expect the food business to generate EBITDA of 4.3 billion euros next year. At the average multiple of rivals Kraft Heinz , Danone , and Nestlé that unit’s enterprise value would be almost 60 billion euros. The remaining business, expected to produce EBITDA of 8 billion euros, is worth 100 billion euros if valued at the average of Colgate-Palmolive and Henkel .
After knocking off debt, Unilever’s equity value would be 144 billion euros, or 33% more than its closing market value on
Tuesday.
Without a suitable target, Jope may resist such a radical breakup. But the risk is that an activist investor gives him little choice. Buying GSK’s consumer business looked a bit like having a baby to save a marriage. Unilever may now be heading for a divorce instead.
Nelly
“Looks like I missed the boat again”
Missed the boat or lost your bottle?
After a ferocious backlash from investors Jope and Co have ruled out paying more than the £50 billion previously offered for GSK healthcare effectively ruling out any deal. Shares in the US finished up almost 8 percent so should see a shareprice rebound in the UK.
But where does this leave the BOD who gave effectively been chastised by shareholders?
They’ve demonstrated they are not fit to run a company of Unilever’s stature. There has to be some fallout from this fiasco.
rednwhitestripes, the 3495p transaction is a late reported one from 13:-- , total c £1m, when the sp hit its lowest point, per Share Trades.
Looks like I missed the boat again - had my finger on the buy button more than once this week - just couldn't bring myself to hit it with the inept management team we have.
"Looking forward to updating performance on the 10th". Does this suggest there is actually some improved performance, or that they are hoping that this sorry saga is forgotten (Personally I'll never forgive the FD) when we have some new numbers to play with?
And as for "continued engagement with shareholders". F****** you ****s.
The former. The latter is simply the spread left on the books.
Could someone help a newbie with advice?
The share price here shows close of 3675 yet on BBC market data showed a huge land slump to 3495, so .65% down on the opening price.
Which is right?
Hope they try to buy some great businesses like fever tree or hotel chocolat than trying to buy big ones like this. Thank god they are not going for auction with GSK.
Excellent RNS
Unilever update
London, 19 January 2022. We note the recently shared financial assumptions from the current owners of GSK Consumer Healthcare and have determined that it does not change our view on fundamental value.
Accordingly, we will not increase our offer above £50bn.
Unilever is committed to maintaining strict financial discipline to ensure that acquisitions create value for our shareholders. Unilever also reiterates its commitment to continuing to improve the performance of its existing portfolio through its ongoing focus on operational excellence, its upcoming reorganisation and by rotating the portfolio to higher growth categories.
We look forward to updating on our performance for Q4, and the full year, on February 10th and continued engagement with shareholders.
UL up 8.8% at the moment..
Sounds like someone had a word in his shell like
Forgot to mention its in the RNS
This should slow the fall in the SP as there is a cap on the outgoings.
So is the offer left on the table with a deadline?
I doubt GSK will now jump in and say OK then
Is the deal now dead?
Upgrade From Sell to buy £41 .
Seems Unilever began talks with shareholders and have brought forward an update to Monday about off loading lower growth brands and Unilever wouldn’t overpay for any asset.
Article in The Times today.
Sorry. That was my attempt at a joke. Thought better of it now.
What an excellent, well led company this must be. Up over 3% today with no news.
BOA STAYS 'NEUTRAL' ON UNILEVER, SAYS UPSIDE AND DOWNSIDE RISKS 'WELL BALANCED'
(Sharecast News) - Analysts at Bank of America reiterated their 'neutral' recommendation for shares of Unilever following news at the weekend that it had made three bids for GlaxoSmithKline's consumer health business, telling clients they belived that upside and downside risks to the share price were "well balanced" at current levels.
On the plus side, the proposed deal would help rectify Unilever management's excessive focus on profitability be a step in the right direction towards growing its topline, while giving it exposure to leadership in faster-growing categories.
But there was limited scope for synergies due to Unilever's scant presence in consumer health, oral care and nutrition, they added.
To that one could add Unilever's lack of experience in over-the-counter consumer health products and possible competition concerns in oral care, as the company's market share would be in excess of 35%.
Lastly, given the increasingly costly rejections of its offers, and the resulting increase in its projected indebtedness if it succeded, BoA believed that any potential hike in the offer price would likely be in shares or require further disposals of "sizeable parts of the business".
They estimated that a £41bn increase in the company's debt would push its net debt as a proportion of earnings before interest, taxes, depreciation and amortisation to 4.5-5.0 times, which would be more than its European Food/HPC peers.
BoA stood by its 4,500.0p target price on the stock.
Toff, his tenure is toast.
THey could do a lot worse that hiring Dave Lewis,
who is no longer Tesco CEO.
He was known by the moniker "Drastic Dave" during
his time at Unilever when significantly culling their number of brands.
More of that, among other things, needed.
And he knows how to run a tight ship.