Unilever war of words with investors

UNILEVER has criticised its own shareholders for opposing the company’s plans to quit the UK.

The consumer goods group, which makes Domestos, Marmite and Dove soap, wants to axe its legal headquarters in Britain and base itself solely in Rotterdam – but there is growing discontent in the City at the proposed move.

Investors are furious because it would see Unilever kicked out of the FTSE 100, forcing many shareholders to sell their stock. A number of major shareholders have pledged to vote against the move. But Unilever has been accused of seeking to pin the blame on others for its woes.

Unilever’s chief finance officer Graeme Pitkethly said those who have voiced concerns are wrong.

He took particular aim at David Cumming of Aviva Investors, which owns 1.4pc of Unilever.

Cumming has said the plans offer no advantages to investors who own stock in London, and has pledged to oppose them in a shareholder vote next month.

But Pitkethly said: ‘He is incorrect. There are clear benefits for all shareholders and for UK shareholders in particular.

‘They get access to a simpler and more dynamic Unilever which is going to be more successful in future.’

Unilever has also attacked the London Stock Exchange for threatening to boot it out of the blue-chip FTSE100. The firm was told it will lose its listing because the index is for British firms only, and Unilever will no longer count when it axes its UK headquarters.

This will force many large investors to sell their stakes because they are only allowed to hold shares in Footsie stocks.

In a newspaper article yesterday, Unilever’s chairman Marijn Dekkers said no jobs will be affected by the change.

For the plan to succeed, investors who own 75pc of shares listed on the London Stock Exchange must give their approval.