Revolt at plot to move iconic firm to Holland

THE maker of Marmite is facing a fierce backlash over plans to ditch its UK headquarters.

Unilever wants a single legal base in Holland, severing a link with Britain that began in the Victorian era.

But the firm could be defeated by its own shareholders over the plan in a vote next month.

Some of Unilever’s biggest investors have said they will oppose the change, which can only pass if it gets 75 per cent support in London.

Large shareholders have taken the rare step of raising concerns publicly. In private, other big owners of the stock said they intended to defy the plan.

A defeat would be a humiliation for Unilever’s £10million-ayear chairman Paul Polman, who has staked his reputation on winning the vote and even persuaded Holland to change its tax laws to make the prospect more appealing. David Cumming, chief investment officer of Aviva Investors, said: ‘We’re going to vote against the proposal. It means longstanding UK shareholders may be forced to sell their stock.’

City analysts expect the battle to go down to the wire when the vote takes place in October.

Laith Khalaf, of savings firm Hargreaves Lansdown, said: ‘There’s grumbling amongst shareholders, and it’s far from a cert this is going to happen.’

Since it was created by the merger of British soap maker Lever Brothers and the Dutch firm Unie in 1925, Unilever has had joint legal headquarters in Rotterdam and London.

Mr Polman wants to axe the UK HQ to make the firm simpler. The move only involves Unilever’s legal structures, and no jobs will be affected in the short term. Unilever is listed on both the London and Amsterdam stock exchanges. It expects to win support from more than half of Dutch shareholders.

But it also has to be backed by three-quarters of investors on the London Stock Exchange.

Unilever shares will still be listed in London, but will be axed from the FTSE 100, meaning those who invest in trackers or active funds that only hold shares in FTSE 100 firms will be forced to offload their shares, potentially costing them millions if the move leads to a selling frenzy and prices fall.

Big investor Lindsell Train said it was likely to vote against the plans, adding: ‘Some UK clients... may become forced sellers of Unilever shares at a time and price not of our choosing.’

Columbia Threadneedle, one of the ten largest investors, said Unilever’s plan ‘discriminates against UK shareholders’.

Unilever said the move would let it ‘compete effectively, give greater flexibility for strategic portfolio change and strengthen corporate governance.’