(Reuters) – Unilever (NYSE 🙂 PLC has effectively abandoned plans to acquire GlaxoSmithKline’s consumer healthcare division. It stated that the company would not increase its offer of 50 billion pounds ($68 billion), which GSK rejected previously.

Unilever shares that are listed in the U.S. rose 10.1% following the news while GSK’s dropped 2.8%. These stocks are also traded on the.

GSK rejected Unilever’s three bids for its consumer division, home to brands like Sensodyne toothpaste and Emergen-C vitamin supplements, and Panadol painkiller. GSK said the bids were “fundamentally undervalued the company and its prospects.”

It stated it would continue with its plans to separately list the company in mid-2022. The unit received improved financial assumptions.

Unilever stated in a statement that while it acknowledged these, it “determined it doesn’t change our view of fundamental value.” Accordingly, we will not increase our offer above £50 bln”.

GSK spokesmen said the company was focused on increasing shareholder value, and that it is confident about the future prospects of its consumer healthcare business. Pfizer (32%) of the shares in (NYSE:).

The shareholders added, “The Consumer Healthcare company has an extraordinary portfolio and offers prospective and existing shareholders a highly attractive financial profil supporting investment and future return.”

GSK stated that Unilever was not interested in the offer and released forecasts showing a 4% to 6% annual organic sales increase for GSK. GSK’s sales were 9.6 billion pounds over the long-term.

The estimate exceeded its previous forecast that it would beat the growth rate of approximately 4% in consumer health markets.

British pharmaceutical company, Royal Canin stated that it will share further details about its strategy for consumer brands at an investor meeting on February 28th.

It would be held following its fourth quarter results, which were announced on February 9, where the event might shed some light on its thinking.

Analysts and investors have widely criticised Unilever’s offer. Shares in Dove soap maker fell 8% Monday on fears about financial consequences.

Reuters heard from a source close to Pfizer’s strategy earlier this week, that GSK was to negotiate with Alan Jope at Unilever if Unilever is ready to raise its bid to over 60 billion pounds.

Pfizer corrects JAN 19 story, to clarify that Pfizer holds stake in healthcare market.

($1 = 0.7337 pounds)