All eyes will be on the next set of results from Unilever (ULVR) after it foiled a $143bn (£111bn) takeover attempt by Kraft Heinz, backed by Warren Buffett and the three Brazilian billionaires at private equity company 3G. At the time of the rejection the Anglo-Dutch group stated that February's $50 a share cash and stock offer, which was pitched at an 18 per cent premium to the consumer goods giant's share price at the time, “fundamentally undervalues Unilever” and that there was no financial or strategic merit to a deal.
Although the attempted takeover fell through, it forced the owner of Dove soap and Magnum ice cream to undergo a strategic review of its operations, which it revealed in April, over how best to create value for shareholders. The measures included a 12 per cent increase to the ordinary dividend, a €5bn (£4.45bn) share buyback, speeding up its “Connected 4 Growth” cost-saving scheme, and targeting a 20 per cent underlying operating margin by 2020. The refreshments and foods businesses were also combined into one as part of an effort to accelerate the margin progression and the spreads business was put up for sale.