GlaxoSmithKline plc (LSE:GSK) is courting the sovereign wealth funds of Qatar and Singapore as cornerstone investors in a listing of its £50 billion consumer business as it seeks to head off a risky takeover by Unilever. GSK will formally open discussions with state-owned funds after GSK's capital markets day in February 2022 in a bid to shore up support ahead of a float slated for mid-2022. Securing the backing of a sovereign wealth fund will allow GSK to offer an exit to investors who do not wish to hold stock in the new company.

The Qatar Investment Authority and GIC Pte. Ltd. are among those that will be targeted, it is understood. It comes as GSK seeks to head off a potential takeover bid for its consumer wing by Unilever PLC (LSE:ULVR) , which was on January 17, 2022 forced to defend offering £50 billion in 2021 in a proposal which was rebuffed.

Alan Jope, chief executive of Unilever, said he was prepared to sell food brands to fund the acquisition, with sources at the company saying the likes of Marmite, Hellmann's mayonnaise and Ben & Jerry's were all on the block. GSK's plan to secure cornerstone investment marks a fresh twist in the battle for some of its best-known brands and could break a stand-off between the company's board, led by chairman Sir Jonathan Symonds, and the Wall Street activist Elliott Investment Management. It is understood that many GSK shareholders are supportive of the plan to float the consumer arm but do not want to hold stock in the new company because they are focused on its pharmaceutical prowess.

A sovereign wealth fund would be able to act as a buyer for these investors' shares. Last night, a spokesman for GSK declined to comment on talks with sovereign wealth funds. Earlier yesterday GSK said Unilever's approaches "fundamentally undervalued" the consumer business.