Unilever to restructure after bids for GSK consumer unit

[LONDON] Unilever is promising a major restructuring initiative and plans to sell off slow-growth brands as it weighs making a higher offer for GlaxoSmithKline's consumer unit.

Unilever said it will announce the restructuring this month. The disclosure comes after Glaxo said over the weekend that it rejected three offers from the consumer-products company for a bundle of brands including Advil painkiller and Sensodyne toothpaste, the latest of which was worth £50 billion (S$91.7 billion).

The Dove soap owner said it will refocus around its health, beauty and hygiene operations, suggesting divestitures will involve its food operations, which include the Ben & Jerry's and Magnum ice cream brands.

Glaxo has been planning to spin off the consumer brands, but shareholders including Elliott Investment Management have been pushing chief executive officer Emma Walmsley to consider a sale instead.

Unilever has held talks with banks about additional financing for a potential sweetened offer for the Glaxo unit, said sources. Some financial firms have discussed lending enough for a higher bid. Unilever hasn't made a final decision on using the firepower, said the sources.

BLOOMBERG

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