FTSE confirms new Unilever not eligible for UK blue chip index
(Adds details, comment, byline, London dateline)
By Martinne Geller and Simon Jessop
LONDON, Sept 12 (Reuters) - Consumer goods giant Unilever
will not be included in Britain's blue-chip
FTSE 100 index once it ends its dual-headed structure, index
compiler FTSE Russell said.
The exclusion risks angering some UK shareholders whose
approval is needed to complete the restructuring, which is aimed
at making Unilever more agile, particularly when it comes to
mergers and acquisitions.
The confirmation came in a notice posted on the exchange's
website https://bit.ly/2O9xGcr and confirms previous guidance
from Unilever that it was "very unlikely" to be eligible after
becoming a single corporate entity incorporated and
headquartered in the Netherlands.
The notice came hours after the maker of Dove soap and
Lipton tea published a prospectus regarding its move that
included a timeline for the December listing of its new Dutch
FTSE Russell will select the company to replace Unilever PLC
in the FTSE based on closing prices on Dec. 19, two days before
the current UK and NV entities stop trading. Unilever has been
one of the members of the FTSE 100 since its launch in 1984.
Unilever said in June that it planned to maintain a "premium
listing" in London and hoped that investors who were impacted by
its departure from the index would still be able to hold its
Some funds do not invest in shares that are not part of the
index of leading stocks.
"We continue to agree that restructuring Unilever makes
sense, but are still of the view that Unilever's approach
discriminates against UK shareholders," Columbia Threadneedle
Investments, a top-10 Unilever shareholder, according to Thomson
Reuters data, said in a statement.
Shareholders will vote on the move next month. Approval is
needed from 75 percent of UK shareholders and 50 percent of
Unilever shares were down less than 1 percent at 0932 GMT on
(Additional reporting by Nivedita Balu in Bengaluru and Simon
Jessop in London
Editing by Mark Heinrich and Keith Weir)
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