The investment arm of Legal & General (LON:LGEN) is set to vote against Unilever’s (LON:ULVR) plans to scrap its London headquarters, City A.M. has reported. The news marks another blow for the consumer goods giant which turned to small shareholders for support this week over its simplification plans which will see the company ditch its dual-headed structure in favour of a Netherlands-based entity.
Unilever’s share price has slipped into the red in London in today’s session, having given up 0.43 percent to 4,214.00p as of 13:46 BST. The decline is largely in line with losses in the broader UK market, with the benchmark FTSE 100 index currently standing 0.56 percent lower at 7,503.45 points.
Legal & General to vote down Unilever plan
City A.M. reported today that Sacha Sadan, director of corporate governance at L&G’s investment management arm (LGIM), had said that the firm would join a growing shareholder revolt against Unilever’s plans to incorporate solely in the Netherlands.
“We do not believe Unilever has made a compelling case for many Plc shareholders to support the recommendation in favour of Dutch incorporation,” he pointed out. “Therefore, we intend to vote against Unilever’s proposed resolution.” The Telegraph noted in its coverage of the news that LGIM is Unilever’s sixth largest shareholder with a 2.28-percent interest.
Consumer goods group faces investor revolt
Sadan further noted that LGIM had “engaged with the company on a number of issues including its decision to unify its corporate structure,” and had further worked with the Investor Forum to engage collectively with other investors.
Legal & General’s investment arm joins other Unilever shareholders, including M&G Investments, Columbia Threadneedle and Aviva Investors, which are set to oppose the consumer goods giant’s plans.