Unilever will pursue a deal for GlaxoSmithKline's consumer healthcare business.

That was the signal from the British conglomerate on Monday (January 17).

It comes after GSK confirmed over the weekend it had rejected a $68 billion offer, which it said 'fundamentally undervalued' the unit.

GSK also said it would stick to its plan of listing the division this year.

The consumer healthcare arm of GSK is home to brands like Panadol painkiller and Sensodyne toothpaste.

Unilever - which makes Marmite and Dove soap - defended its bid.

It called GSK's consumer healthcare arm a "strong strategic fit" that would help drive growth in global markets.

GSK has hired Goldman Sachs and Citigroup to review Unilever's approach, but sources close to the matter said it would not engage in talks unless Unilever bumped up its offer.

Another source said it would open negotiations if Unilever was ready to improve its bid to more than 60 billion pounds - or around $81 billion.

GSK shares jumped 5% in early trade to their highest level since May 2020 - before scaling back.

Unilever shares were down almost 8% by mid-afternoon UK time on Monday.