Unilever names activist investor to board: ‘Unilever needs that’
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May 31, 2022
Jim Cramer reacts to the announcement on CNBC’s “Squawk on the Street”.
Shares of the consumer goods company are up roughly 8.0% on Tuesday.
Shares of Unilever plc (LON: ULVR) are up 8.0% on Tuesday after the consumer goods company named Nelson Peltz to its board as a non-executive director.
Peltz has a 1.50% stake in Unilever plc
The American activist investor will also be a part of the board’s compensation committee. He’s expected to assume the roles by late July 2022. In the press release this morning, Peltz said:
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Unilever has significant potential, through leveraging its strong consumer brands and geographical footprint. I look forward to working collaboratively with management and Board to help drive Unilever’s strategy, operations, sustainability, and shareholder value.
Through his hedge fund (Trian Fund Management), Peltz has a 1.50% stake (approximately) in Unilever. The news comes shortly after the British multinational failed to buy GSK’s consumer health business for $63 billion.
Jim Cramer reacts to the announcement
Commenting on the Unilever news on CNBC’s “Squawk on the Street”, Jim Cramer said Peltz had the potential to turnaround the London-headquartered company that’s “fallen behind pretty much everywhere”.
When he came to P&G, they were underperforming in emerging markets. Nelson helped turn around emerging markets. There’s a level of discipline that he could bring. He does a lot of homework. Unilever needs that homework.
Nonetheless, Unilever plc, despite higher input costs, reported better-than-expected turnover for its fiscal Q1 last month. The stock is still down about 7.0% versus the start of the year 2022.
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