Ice cream company Ben & Jerry’s board members have appealed to prevent its parent company, Unilever PLC (NYSE: UL), from selling the assets to a local licensee in Israel, the Wall Street Journal reported.
Ben & Jerry’s feels the asset transfer could lead to the brand’s products being used to oppose social issues it supports.
Unilever announced the sale in June 2022 after coming under pressure over Ben & Jerry’s decision not to sell its products in Jewish settlements in the West Bank and parts of East Jerusalem.
When Unilever acquired the ice cream brand two decades ago, its independent board formed a unique corporate governance arrangement to protect the brand’s image.
The report noted Ben & Jerry’s board needed confirmation from the court that Unilever wouldn’t be able to change its social stances without its approval.
Meanwhile, Unilever said the sale had already closed and that the members of Ben & Jerry’s board had demarcated rights that didn’t give them the power to sue the brand’s parent company.
Price Action: UL shares are trading lower by 0.50% at $48.18 in premarket on the last check Tuesday.
Photo Via Wikimedia Commons
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