A top 10 investor in Unilever (LON:ULVR) has complained that the company has not engaged with investors ahead of its move to create a unified headquarters in Rotterdam, City A.M. reports. The news comes after the consumer goods giant recently picked the Netherlands over the UK as it looks to simplify its structure in an effort to unlock more value for shareholders.
Unilever’s share price has been little changed in today’s session, having inched 0.02 percent higher to stand at 3,735.00p as of 14:29 GMT. The shares are outperforming the broader market selloff, with the benchmark FTSE 100 index having tumbled 1.39 percent to 6,940.99 points. The group’s shares have lost a little over seven percent of their value over the past year, as compared with about a five-percent drop in the Footsie.
Columbia Threadneedle hits out at Unilever
City A.M. reported today that Columbia Threadneedle, a top 10 shareholder in Unilever, had said that it was ‘disappointed’ by the lack of dialogue with the Anglo-Dutch group as it chose Rotterdam for its single corporate base.
“We’re disappointed by Unilever’s lack of engagement with shareholders ahead of its decision to restructure, particularly in view of the likely impact on its premium listing in London,” Iain Richards, head of responsible investment at Columbia Threadneedle, commented, as quoted by the newswire. “Given the potential implications and need for 75 percent approval, they need to do more to convince UK shareholders of the merits of the move.”
Analysts on FTSE 100 consumer goods group
Goldman Sachs, which has a ‘neutral’ rating on Unilever, set a price target of 4,000p on the shares this week. According to MarketBeat, the consumer goods group currently has a consensus ‘hold’ rating and an average price target of 4,417.06p.