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0 0 -0.00177935943060501 -0.00160142348754454 -8.89679715302946E-05 0.00729537366548037 0.0137010676156584 0.0137010676156584
Stock impact report

A complicated exit: RBC wary of Unilever's food reshuffle [Yahoo! Finance]

Unilever PLC American Depositary Shares (each representing One Ordinary Share) (UL) 
US:NYSE Investor Relations: unilever.com/investor-relations
Company Research Source: Yahoo! Finance
The firm, which rates the shares at Underperform with a 4,200p price target, said it is “not overly impressed” by what has been outlined so far. Unilever indicated that a deal could include an upfront component of $15.7bn in cash, with the rest in McCormick equity, leaving the company with a 65% stake in the new entity. That structure “would hardly be a clean exit,” analyst James Edwardes Jones wrote. Excluding the India foods unit, which is estimated at 11% of the business, RBC Capital said brands such as Hellmann's and Knorr represent roughly two-thirds of the division's value. The concern, analysts said, is that Unilever appears to be moving from “full ownership of one dominated by just two brands” to partial ownership of a far less focused business. “That doesn't sound terribly appealing to us,” RBC Capital wrote. A later update from the firm said the deal terms are “much as foreshadowed,” with Unilever's 65% stake split between shareholders and the company, alongside € Show less Read more
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