Unilever share price rises on bid speculation

on Jun 12, 2014
Updated: Apr 9, 2020

INVEZZ.com, Thursday, June 12: Shares in Unilever (LON:ULVR) rose as much as 1.2 percent today, with traders citing media speculation about a bid for the consumer goods maker from private equity firms.

Unilever’s share price touched 2,727.00p in early morning trading, after media reports suggested that the Anglo Dutch company was being eyed by a consortium of private equity firms which have been given the green light by bankers to launch a £40 a share cash offer for the group.
According to This is Money’s coverage of the rumour, Unilever could be broken up with a large proportion of its 400 brands, which include Dove soaps, Hellman’s mayonnaise and Ben & Jerry’s ice cream, sold to its largest competitors Nestle and Procter & Gamble.

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Several FTSE 100-listed companies have recently seen their shares move on media speculation. On May 26, publications suggested that InterContinental Hotels Group (LON:IHG) had rejected a £6 billion takeover approach from a mystery US suitor, sending the company’s share price significantly higher (InterContinental share price: Group rejects takeover bid).

On June 5, shares in Smith & Nephew (LON:SN) rose more than four percent with Bloomberg reporting that Medtronic, one of the world’s largest manufacturers of medical devices, was evaluating a bid for the UK artificial hips and knees maker (Smith & Nephew share price up as new US suitor emerges).

On June 10, SABMiller’s (LON:SAB) share price gained almost six percent on the back of speculation about a potential takeover by Anheuser-Busch InBev (SABMiller share price gives up some of yesterday’s gains).
**Keeping faith in Russia**

Unilever is keeping faith in Russia as an important growth market and is willing to invest in the country despite a slowing economy, the group’s CEO Paul Polman has stated.

The chief executive revealed on Monday that he had met Russian First Deputy Prime Minister Arkady Dvorkovich last week and they discussed the long-term investments of the Anglo-Dutch company, whose Russian businesses include cosmetics maker Kalina, ice cream producer Inmarko, dressings maker Baltimor and its own factories producing Knorr soup and Lipton tea.
“We talked other investments we continue to make to be sure that we grow our business here,” Polman told Reuters during a visit to Moscow. “Obviously (the Ukraine crisis) affects our business. Despite that, we are growing our market share in all our home and personal care businesses… We have a good business in Russia and we don’t complain about that,” he added.
**Unilever share price**
After gaining as much as 1.2 percent in morning trading, as of 13:45 BST, Unilever’s share price settled at 2,699.00p – 0.78 percent up on the day
Of the 17 analysts projecting 12 month price targets for the FTSE 100-listed company for The Financial Times, the median target is 2,600.00p, with a high estimate of 3,050.00p and a low estimate of 2,090.00p.
**As of 13:33 BST, buy Unilever shares at 2,699.00p.**
**As of 13:33 BST, sell Unilever shares at 2,698.00p.**


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