Alberto Culver settles shareholder lawsuit
Brand owner only negotiated with Unilever, say shareholders
Alberto Culver Company has reached an agreement with a group of shareholders over a lawsuit filed against the company stemming from its proposed acquisition by Unilever. The Alberto V05 and Noxzema owner has agreed to alter key features of its acquisition agreement with Unilever, following accusations by certain shareholders – led by Oklahoma Firefighters, City of Riviera Beach, Laborers Local 235 and KBC Asset Management – that it had negotiated only with Unilever and had failed to canvass the market to determine the best available deal for shareholders.
As part of the settlement, Alberto Culver will eliminate the matching rights it had granted to Unilever, lower any break-up fee it may be obliged to pay by $25m (to $100m) and be prepared to provide any superior bidder with the same confidential documents it had shared with Unilever.
The company will also amend its proxy statement to provide shareholders with more information about the proposed transaction and will postpone a scheduled shareholder vote on the issue until 17 December, to give shareholders more time to analyze the proposed Unilever acquisition and potential suitors more time to consider a higher bid.