Interesting development, either way the FTSE 100 is @£$£@£$
Unilever relocation plan rejected by major shareholder
Unilever relocation plan rejected by major shareholder
One of the top shareholders in Unilever has said it will vote against the firm's plan to move its headquarters to the Netherlands, amid growing investor concern about the plan.
Aviva Investors told the BBC the move could force UK shareholders to sell their stock and offered "no upside".
Unilever, which makes Marmite and Dove soap, is relocating to simplify its corporate structure.
It needs 75% of shareholder votes to get the plan through.
Marmite maker Unilever goes Dutch for HQ
Why is Unilever scrapping its London HQ?
Unilever currently has headquarters in both London and Rotterdam, but it announced in March that it planned to have just one HQ located in the Dutch city.
The company is one of the biggest firms in the UK's FTSE 100 share index with a market value of about £124bn.
However, under UK rules it would no longer be eligible for inclusion in the FTSE 100 in London after the proposed change.
Shareholders fear this would cause a rush for the exits to sell the stock, leading to losses.
David Cumming, chief investment officer for equities at Aviva Investors, told the BBC's Today programme: "Aside from the fact it is disappointing to see a world class company like Unilever leave the UK, it also means longstanding UK shareholders may be forced to sell their stock.
Aviva Investors told the BBC the move could force UK shareholders to sell their stock and offered "no upside".
Unilever, which makes Marmite and Dove soap, is relocating to simplify its corporate structure.
It needs 75% of shareholder votes to get the plan through.
Marmite maker Unilever goes Dutch for HQ
Why is Unilever scrapping its London HQ?
Unilever currently has headquarters in both London and Rotterdam, but it announced in March that it planned to have just one HQ located in the Dutch city.
The company is one of the biggest firms in the UK's FTSE 100 share index with a market value of about £124bn.
However, under UK rules it would no longer be eligible for inclusion in the FTSE 100 in London after the proposed change.
Shareholders fear this would cause a rush for the exits to sell the stock, leading to losses.
David Cumming, chief investment officer for equities at Aviva Investors, told the BBC's Today programme: "Aside from the fact it is disappointing to see a world class company like Unilever leave the UK, it also means longstanding UK shareholders may be forced to sell their stock.
Additionally the company wishes to act, that is something shareholders do not ignore.
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