Unilever Is 'Highly Energized' Following A Failed Takeover By Kraft

According to a Bloomberg report, Unilever's CEO Paul Polman told reporters the entire company, from members of the board down to associates selling its products on the shop floor, came out of the failed merger process "highly energized."

Polman is now taking advantage of the optimistic attitude to protect its status as an independent company after acknowledging the approach from the American food giant company caught him off guard.

New Game Plan

Polman explained to reporters and the investment community Unilever's new game plan going forward.

First, the company's spreads business, which is valued at around 7.5 billion euros, will be put up for sale and if no buyer emerges then a spin-off will happen. However, it may not come to that, as Polman said he has received "lots and lots" of interest from potential buyers.

Second, Unilever will combine its food and refreshments businesses into one single entity that will be domiciled in the Netherlands. Also, the company will review its structure as an Anglo-Dutch company and make some changes that "opens up the door for major M&A activity."

Also on the agenda is boosting shareholder value through $5.3 billion worth of share buybacks and a cost-cutting initiative that targets 3.5 billion euros of savings through 2019.

Finally, Unilever is aiming for a 20 percent underlying operating margin in 2020 which marks an increase from 16.4 percent last year.

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