Bosses kick off City persuasion tour
Boots and Alliance UniChem have embarked on a mission to persuade sceptical shareholders of the merits of their proposed merger.

Major shareholders in the City are to be visited by Boots chairman Sir Nigel Rudd, Alliance UniChem deputy chairman Stefano Pessina and other key executives in an effort to smooth out any anxieties.

Boots' second-largest shareholder, Templeton, said yesterday that it still needs to be convinced of the long-term benefits of the£7 million deal.

Investors are said to be concerned about the proposed management structure of merged company Boots Alliance. One Boots shareholder told the Financial Times: 'It is a rather odd executive structure. An issue is control of the company and the role of Stefano Pessina. I can't think of any company with something similar.'

Although some shareholders are reported to be backing the union, analysts are concerned about the competitiveness and profitability of the new, larger entity, especially with the encroachment of the supermarkets.

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