Unilever's plans to stay in the UK could still bring about more dramatic developments

The business desk went into a frenzy this week when consumer goods giant Unilever gave in to weeks of building shareholder pressure and announced it would no longer be moving its headquarters to the Netherlands. The group’s proposal had caused no small amount of panic in the market – Unilever is one of the UK’s biggest companies, known for brands such as Marmite and Dove soap, and a relocation could have led to British investors being forced to sell their shares.

The news got a big reaction. While investors are pleased that the group is staying put, many are not happy about the way Unilever handled the process. Several high-profile shareholders made their position on the proposed move clear from the beginning – that position being a big fat no. The company is now facing increased regulatory scrutiny amid accusations of mismanagement.

However, it did provide the perfect opportunity for The Independent’s chief business commentator, James Moore, to write a particularly fiery column. He points out that while politicians have been quick to leap on Unilever’s volte-face as a victory for either Sadiq Khan, the Tory government or Brexiteers, the fact is that it had nothing to do with politics.

Instead, the decision to stay was a victory for positive engagement and activism by the City groups who run the funds that invest in Unilever.

It’s also worth noting that a big driver behind Unilever’s decision to up sticks in the first place was last year’s near miss involving a $143bn (£109bn) hostile takeover bid from US group Kraft-Heinz. The Netherlands offers more protection for companies that don’t wish to be bought, and now that the move has been called off, it’s worth keeping an eye out for potential future buyers who may start circling.

Elsewhere, Elon Musk reignited his war of words with the US regulator. In a tweet, the Tesla founder dubbed the Securities and Exchange Commission the “Shortseller Enrichment Commission”; predictably, the electric car company’s share price sank. It’s difficult to tell sometimes whether the entrepreneur is a knowing self-saboteur – he has raged for years against the investors who are betting against Tesla, but his recent actions have played into those same shortsellers’ hands.

If nothing else, Musk’s Twitter account is becoming as compelling as Donald Trump’s, and almost as useful as a source of stories.

Yours,

Caitlin Morrison

Business Editor