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US market regulator has halted IPO reviews during shutdown

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Magnum ice cream unit initially scheduled for Amsterdam

listings

on November 10

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Planned secondary listings in New York and London

Oct 21 (Reuters) - Consumer goods group Unilever ( UL ) is

delaying the demerger of its Magnum ice cream unit due to the

U.S. government shutdown, it said on Tuesday, marking an early

example of business disruption from the impasse that shows no

sign of ending.

Unilever ( UL ), the maker of Dove soap and Hellmann's

mayonnaise, said the U.S. Securities and Exchange Commission was

currently unable to declare effective the registration statement

required for shares of The Magnum Ice Cream Company to be listed

and traded on the New York Stock Exchange.

The listing of the ice cream business that includes brands

like Ben & Jerry's ( UL ) and Cornetto was originally scheduled for

November 10 in Amsterdam. Secondary listings for Magnum are also

planned in New York and London.

US IPO REVIEWS HALTED DURING SHUTDOWN

Unilever ( UL ) said preparatory work for the demerger was on track

and progressing well, and that it remained committed to

completing the spin-off process this year, with further updates

on the revised schedule to be provided as soon as possible.

The U.S. market regulator has halted IPO reviews during the

shutdown, although earlier this month it eased the way for

companies to proceed with listings despite the political

gridlock.

Companies are normally prevented from debuting on Wall

Street during periods when Congress has not approved funding for

government operations, because officials are unable to review

and approve registration statements.

That has prompted investor concerns that partisan gridlock

in Washington could dent the IPO market.

However, companies can allow their statements to become

effective automatically, which involves setting their IPO

pricing 20 days before the listing instead of finalising it the

night before after a U.S. SEC review.

Despite the delay, Unilever ( UL ) confirmed that the general

meeting of shareholders to vote on the proposed consolidation of

its share capital, which is related to the demerger, will still

take place on Tuesday. However, the implementation timeline for

that consolidation will also be updated.

The most prominent corporate impact of the 20-day U.S.

government shutdown has been on airlines as air traffic control

staffing shortages delay travel at airports.

The U.S. government has said the shutdown may cost the economy

as much as $15 billion a week in lost output.