Unilever's media buyer Initiative said the revelation that the company wanted to sell Unilever Cosmetics International (UCI) had "come out of the blue", while a spokeswoman for UCI in London said, "We haven't been told anything".
One analyst, who had also failed to anticipate the move, said it followed the logic of Unilever's 'path to growth' strategy, which sees the company "focus in on mass-market megabrands".
Reports suggest that rival Procter & Gamble, L'Oreal and Estee Lauder may be interested in picking up Unilever Cosmetics International (UCI), which could fetch up to £500m.
UCI's brands include the TV-advertised CKOne and Eternity fragrances along with other designer-named perfumes such as Cerruti Valentino and Truth.
The decision to move out of fragrance - Unilever also sold its Elizabeth Arden division in 2000 - is part of the company's five-year growth strategy that will see it reduce its brand portfolio to 400. Unilever has already reduced its brands from 1600 to 800 and is now concentrating on core, high-yield brands.
UCI spends around £6m advertising its brands in the UK. Advertising is created CRK in New York, while local media is bought by Initiative Media.
"We're not that worried, said Robert Ditchum, commercial director at Initiative. "We never like to lose business but it's part and parcel of working with Unilever and we've benefited from their acquisitions in the past."
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