Unilever backs down on Dutch HQ move after British investor revolt

Unilever's Anglo-Dutch structure dates back to 1929 when British soap maker Lever Brothers combined with Dutch margarine company Margarine Unie. Unilever sold its margarine and spreads business earlier this year to KKR.

UBS analysts said the investor focus would now shift to Unilever's next steps, corporate governance improvements under the current structure and its operational performance.

Unilever's London-listed shares were down 1 percent at 0957 GMT, while its Dutch shares were down 0.2 percent.

"This change should not really affect the group's near-term operation, although it may lead to a faster pace for CEO succession planning," Liberum analyst Robert Waldschmidt said.

Waldschmidt said the bigger drivers for Unilever's shares were U.S. interest rates and continued difficulties in emerging markets, particularly related to their currencies.

Avoiding uncertainty over the shape of Brexit is another benefit to Unilever putting off a change, analysts at Baader Helvea said.

"Given current political discussions (i.e. Brexit), delaying such a vote until better mid-term visibility exists looks a reasonable approach (by Unilever)," they said.

Unilever was advised by its corporate brokers, UBS and Deutsche Bank, and its legal adviser, Linklaters.