New York, January 28, 2026, 15:39 ET — Regular session
- Kenvue shares dipped roughly 1% in afternoon trading ahead of Thursday’s deal vote
- Company announces quarterly dividend of $0.2075, to be paid on Feb. 25
- The stock-and-cash deal is trading at about a 4% spread that investors are tracking closely
Kenvue Inc shares slipped roughly 1.1% on Wednesday, hovering around $17.30 in afternoon trading. The consumer health firm had ended the prior session at $17.50.
Kenvue and Kimberly-Clark will hold special meetings on Jan. 29 to vote on the takeover, according to a filing. Kenvue shareholders are set to get $3.50 in cash plus 0.14625 Kimberly-Clark shares per Kenvue share. This deal structure means KVUE will trade partially based on the buyer’s stock price. With Kimberly-Clark near $99 on Wednesday, the offer values Kenvue at around $18 a share, creating roughly a 4% gap for merger-arbitrage investors.
Kenvue announced its board has approved a quarterly dividend of $0.2075 per share, set for payment on Feb. 25 to shareholders recorded by Feb. 11. This record date determines eligibility for the dividend. (Kenvue Investors)
The consumer staples sector lagged, with the Staples ETF slipping nearly 1% while the broader market edged up. Procter & Gamble and Haleon, major players in household and consumer health, also saw declines.
Kimberly-Clark posted quarterly profits that beat estimates Tuesday, driven by cost reductions and steady demand for staples like Huggies and Kleenex. The company also confirmed the Kenvue deal is slated to close by year-end. Because the buyer’s shares are part of the payment, its results now factor into the trade. (Reuters)
Kimberly-Clark CEO Mike Hsu revealed that over 90% of early votes submitted by Monday supported the deal, according to The Wall Street Journal. “We feel good about that,” Hsu remarked. (Wall Street Journal)
Proxy adviser ISS urged shareholders to back the deal earlier this month, saying “on balance, support for the transaction is warranted.” It highlighted ongoing negative market sentiment and lingering doubts about Kenvue’s litigation risks as major concerns for voters. (Reuters)
The risk lies in those uncertainties pushing Kenvue’s trading price further from the offer value or affecting the vote. When the deal was announced in November, TD Cowen analyst Robert Moskow called the Tylenol litigation risk “hard to quantify.” Freedom Capital Markets strategist Jay Woods noted the market’s reaction hinted some investors view Kimberly-Clark as “buying damaged goods.” (Reuters)
If shareholders reject the deal, KVUE would probably revert to standalone forecasts instead of takeover valuations. Should it go through, attention shifts to timing, potential legal hurdles, and the buyer’s ability to maintain its stock price during the transition.
Thursday’s Jan. 29 vote is the next obvious catalyst, and until the results come through, the deal spread will probably serve as the market’s daily scoreboard.
