Shareholders Approve P&G-Gillette Merger

14 July 2005

Shareholders both in Procter & Gamble and the Gillette Company met Tuesday to approve the former's $57 billion (€46.72bn; £32.11bn) acquisition of the latter.

Given the deal's dollar-splattered delights, there were few dissenters. It was approved by over 97% of the votes cast by P&G stockholders and 96% of their Gillette counterparts.

However, Massachusetts secretary of state William Galvin is less impressed by the deal which he believes is misleading and undervalues Gillette's stock. He is currently scrutinizing the 'fairness' opinion provided to Gillette by Goldman Sachs and UBS.

He accused the two financial firms of failing to provide a "clear and compelling" justification for the recommended price. "When you look strength of the company, what its long-term prospects were, this was not a good deal for Gillette shareholders," Galvin opined.

Nor are European Commission regulators as euphoric as shareholders over the benefits of the takeover. Having taken a long hard look at the merger, the EC's Competition Commission is mulling a second, more in-depth inquiry lasting up to ninety working days.

Data sourced from Wall Street Journal Online; additional content by WARC staff