Gillette Attempts Hostile Takeover of Schick
Here's one I did not see coming - Gillette's parent company Procter and Gamble is making a bid for Schick's parent company Energizer Holdings. According to this New York Times article:
Procter & Gamble (NYSE:PG) is offering $100 a share for Energizer Holdings (NYSE: ENR), a 10% premium over the stock's Monday close. Sources close to the deal expect a tough road ahead. It's likely that Energizer's board will reject the initial offer, however the recent rash of shareholder lawsuits in the Microsoft/Yahoo deal might make them think otherwise.
The two companies would form a consumer goods behemoth, and that might spell trouble when the Federal Trace Commission examines it for anti-trust issues. Already the European Union has expressed concern that a joint P&G/Energizer would create a monopoly in the razor and battery market, leaving the consumer with few alternatives.
I for one would not like to see this happen. Competition is a good thing. (Somebody please bring FiOS to my neighborhood so I have an alternative to Comcast.) A single razor giant would stifle innovation, and I for one have been looking forward to my eight-bladed razor ever since I fantasized about it two years ago.
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Posted by Russell Neufeld at April 1, 2008 8:02 AM