Last checked at 
* Stock rises 6% to top of FTSE 100
* Unilever, Peltz yet to confirm shareholding
* Barclays says Peltz involvement not much of a surprise
(Adds detail, analyst comment, background)
By Pushkala Aripaka and Richa Naidu
Jan 24 (Reuters) - Shares in Unilever rose 6% on
Monday on reports that activist investor Nelson Peltz has built
a stake in the consumer goods giant whose strategy is under
scrutiny after a short-lived pursuit https://www.reuters.com/business/retail-consumer/unilever-shares-gain-after-opting-not-lift-bid-gsk-assets-2022-01-20
of GSK's consumer healthcare arm.
Peltz's hedge fund, Trian Partners, has built an unspecified
stake in Unilever, a person familiar with the matter told
Reuters on Sunday. The New York-based fund is known for
proposing operational changes at its portfolio companies which
have previously included Procter & Gamble.
Unilever declined to comment on the investment. Shares of
the owner of brands such as Dove soap, Hellmann's mayonnaise and
Sunsilk shampoo were up 6.0% at 3,894 pence by 1146 GMT and the
biggest gainer on London's blue-chip FTSE 100 index.
This isn't the first time Peltz has shown interest in a
consumer goods company.
In 2018, Trian called for a slew of changes at Unilever's
bigger rival P&G. Peltz was then added to the board of the
company, following a months-long proxy fight.
P&G subsequently met some of the activist hedge fund's
demands and announced new financial targets. Peltz stepped down
https://www.reuters.com/business/nelson-peltz-step-down-pg-board-2021-08-05
from the company's board last year.
'NOT MUCH OF A SURPRISE'
Unilever's unexpected and ultimately unsuccessful 50 billion
pound ($67.50 billion) pursuit of GlaxoSmithKline's consumer
health business, which had it gone through would have been one
of the largest ever deals on the London market, raised questions
about Unilever's plans under Chief Executive Officer Alan Jope.
Peltz's stake in Unilever "will not be that much of a
surprise to industry specialists", Barclays analysts said in a
note, adding that his possible involvement with Unilever had
been discussed long before the GSK skirmish.
"From Unilever's perspective, the status quo is not an
option. It would seem that the stars are aligning with both
Unilever management and an activist pushing for more urgency,"
they added.
By Friday's close, Unilever had lost 6% in value since the
GSK overtures were disclosed on Jan. 15 with the chase
effectively abandoned within a few days.
The company's shares have also dropped 31% from highs seen
in late 2019, compared with a 3% rise in the FTSE 100 during the
same period.
Terry Smith, whose Fundsmith vehicle is Unilever's 13th
biggest investor, took aim at Unilever last week, labelling the
GSK bid "a near death experience," and reiterating calls to
focus on the operating performance of the existing business.
Unilever is set to announce an initiative this month to
strengthen its business, and said last week it was committed to
"strict financial discipline" for any acquisitions.
($1 = 0.7408 pounds)
(Reporting by Pushkala Aripaka in Bengaluru, Richa Naidu in
London and Svea Herbst-Bayliss in Boston; Editing by Shounak
Dasgupta, Keith Weir and Kirsten Donovan)
