8th Nov 2006 17:07
Unilever PLC08 November 2006 UNILEVER AGREES SETTLEMENT Rotterdam, 8 November 2006 - Unilever N.V. today announced that it has agreed asettlement with the main parties in the legal dispute over its 1999 UnileverN.V. Preference Shares. These parties, with whom constructive talks have beenheld, include the Dutch Shareholders Association, VEB, and several institutionalshareholders. Unilever N.V. will pay an amount of €1.38 (plus interest of €0.16) compensationper Preference Share held at the beginning of 24 March 2004, the day on whichUnilever N.V. announced its intention to convert the Preference Shares into N.V.Ordinary Shares. Unilever N.V. also agreed to reimburse the VEB and the otherparties who initiated the Enterprise Chamber procedure for costs and expenses. The agreement is subject to the requirement that all Preference Shareholders whorequested the Enterprise Chamber of the Amsterdam Court of Appeal to order aninquiry join in the agreement. It also includes a term that the signatorieswill no longer take legal action against Unilever. The offer will be extended to all those other former Preference Shareholders whoheld Preference Shares at the beginning of 24 March 2004. Payment is expected to be made as from 1 February 2007. The settlement follows publication on 8 September 2006 of the report of theinvestigators appointed by the Enterprise Chamber. The criticisms made in thereport related to communications but did not extend to Unilever's decision toconvert the Preference Shares into Ordinary Shares in 2004 which wasacknowledged to be correct. The Unilever Board set up a Board Committee composed of independentnon-executive Board members and chaired by Professor Wim Dik to deal with thematter. The Committee, which was supported by external legal advisers,considered the matter carefully and recommended that the Unilever Board settlethe dispute with those who held the Preference Shares at the beginning of 24March 2004. The Board agreed with the recommendation, concluding, without any admission ofliability, that it is in the best interest of Unilever and its shareholders tosettle this issue rather than enter into potentially lengthy and uncertainlitigation. It cannot be excluded that, notwithstanding this settlement agreement, otherformer Preference Shareholders may still take legal action. If so, Unilever isconfident about the strength of its legal position vis-a-vis those parties. Unilever previously announced a provision of €300 million for possiblecompensation along with its Q3 results. This announcement today does not yet constitute an offer to the eligible formerPreference Shareholders. The offer, including further details such asinformation on the duration of the offer and other conditions, will be madepublic in the short term. - - - - - - 2006 SAFE HARBOUR STATEMENT: This announcement may contain forward-lookingstatements, including 'forward-looking statements' within the meaning of theUnited States Private Securities Litigation Reform Act of 1995. Words such as 'expects', 'anticipates', 'intends' or the negative of these terms and othersimilar expressions of future performance or results and their negatives areintended to identify such forward-looking statements. These forward-lookingstatements are based upon current expectations and assumptions regardinganticipated developments and other factors affecting the Group. They are nothistorical facts, nor are they guarantees of future performance. Because theseforward-looking statements involve risks and uncertainties, there are importantfactors that could cause actual results to differ materially from thoseexpressed or implied by these forward-looking statements, including, amongothers, competitive pricing and activities, consumption levels, costs, theability to maintain and manage key customer relationships and supply chainsources, currency values, interest rates, the ability to integrate acquisitionsand complete planned divestitures, physical risks, environmental risks, theability to manage regulatory, tax and legal matters and resolve pending matterswithin current estimates, legislative, fiscal and regulatory developments,political, economic and social conditions in the geographic markets where theGroup operates and new or changed priorities of the Boards. Further details ofpotential risks and uncertainties affecting the Group are described in theGroup's filings with the London Stock Exchange, Euronext Amsterdam and the USSecurities and Exchange Commission, including the Annual Report & Accounts onForm 20-F. These forward-looking statements speak only as of the date of thisannouncement. Except as required by any applicable law or regulation, the Groupexpressly disclaims any obligation or undertaking to release publicly anyupdates or revisions to any forward-looking statements contained herein toreflect any change in the Group's expectations with regard thereto or any changein events, conditions or circumstances on which any such statement is based. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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