Second-largest shareholder still unsure
Boots shareholders are not convinced by the proposed merger with Alliance UniChem, it has been reported today.

The 'merger of equals' has faced criticism from both the City and shareholders, just a day after the proposed union was announced.

The Financial Times reported that the second-largest shareholder, investment group Templeton, is still to be convinced of the benefits of the£7 billion deal.

Templeton owns more than 5 per cent of the pharmacy chain, and investment manager Martin Cobb is reported as saying: 'We reserve judgement. At this point, we would prefer clarification on the long-term strategic benefits of putting these two businesses together.'

These concerns were voiced against a bleak backdrop of analyst comments this morning. If the merger goes ahead, Boots shareholders are to hold 50.2 per cent of the new entity and Alliance UniChem holders will control 49.8 per cent.

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