Alberto-Culver agrees to settle suit over Unilever

Alberto-Culver Co., the maker of VO5 and Tresemme hair-care products, agreed to settle shareholder lawsuits that claimed Unilever's planned $3.7 billion takeover isn't favorable to investors.

The settlement covers four shareholder complaints filed in Delaware Chancery Court. As part of the deal, the company agreed to alter features of its agreement with Unilever including lowering any termination fee by $25 million. The company also agreed to share the same confidential information provided to Unilever to any other potential bidder, according to papers filed yesterday in the Wilmington courthouse.

“This settlement removes the barriers to any potential acquirer who wants to put forth a superior bid,” Stuart Grant, an attorney for the shareholders, said yesterday in an e-mailed statement.

Unilever, the maker of Dove soap, announced in September that it would pay $37.50 a share in cash for Melrose Park-based Alberto-Culver. The deal is Unilever's largest in a decade. Unilever's Chief Executive Officer Paul Polman is expanding in home and personal-care products as part of a plan to double total sales.

Dan Stone, a spokesman for Alberto-Culver, didn't immediately return a phone message seeking comment on the settlement.

Lawyers for Alberto-Culver said in court papers that the company agreed to the settlement to “avoid the costs, disruption and distraction of further litigation.” The company denies any wrongdoing.

The case is Laborers Local 235 Benefits Fund v. Lavin, CA5873, Delaware Chancery Court (Wilmington).