>>> Unilever has no protective construction, could sell vital divisions to hold

Unilever has no protective construction, could sell vital divisions to hold off suitor Kraft-Heinz - report (translated)
18 FEB 2017
Unilever [LON:ULVR; AMS:UNA], the Anglo-Dutch consumer goods group, has no protective construction to ward off suitors, Het Financieele Dagblad noted in an analysis of Kraft-Heinz's USD 143bn bid for the business. In addition, the company could look to sell business units to make itself a less attractive target.
Dutch insurers ASR and NN together hold 15% voting rights in the business. Unilever's management could try and convince these companies to refrain from committing their shares to the suitor, the Dutch-language report noted.
In addition, it could look for a suitor which outclasses Kraft Heinz' bid. The item named big PE groups KKR and CVC as having the firepower to jointly acquire the business, however, it has been years since these companies engaged in M&A at this scale.
Alternatively, Unilever could reduce its attractiveness to a suitor by selling unspecified vital business units, the report noted. However, such a transaction will require majority support from the shareholders. In addition, Unilever could opt to acquire a big target itself, however, it is unlikely Kraft Heinz will be deterred by such a deal, the report noted.
In another report on the approach, Het Financieele Dagblad noted Unilever's employees council is concerned about what a takeover would mean for the future of the business. This item cited Hermann Soggenberg, Chairman of Unilever's European employees council.
In another item, Het Financieele Dagblad reported Dutch Prime Minister Mark Rutte said he is carefully monitoring developments related to the approach and its potential social impact. Rutte is a former employee of Unilever, the item added.