The consumer goods giant said on Thursday that it wouldn't raise its rejected 50 billion pound $68 billion offer for GlaxoSmithKline's consumer healthcare business. Shares in Unilever were up 2% after the consumer goods giant said it wouldn't raise its rejected 50 billion pound offer.
After the Dove and Lifebuoy soaps maker ended its pursuit of a business that the pharmaceuticals company plans to spin off later this year, shares in GSK fell by similar levels to the bottom of the FTSE 100.
GSK said on Saturday it had rejected three approaches from Unilever for the business that makes Sensodyne toothpaste and painkillers such as Panadol and is 32% owned by U.S. drugmaker Pfizer.
The final proposal on December 20 contained 41.7 billion pounds in cash and 8.3 billion pounds in Unilever shares, but GSK said it didn't reflect the intrinsic value of the business.
Unilever hasn't increased its bid, which raises questions about its strategy under Chief Executive Officer Alan Jope.
The approach was defended by the company on Monday, calling the GSK business a good strategic fit as it tries to shift towards a focus on health, beauty and hygiene products.
Unilever's shares fell after the approach, and ratings agencies warned of debt downgrades as a result of such a big deal.