Procter & Gamble is trying to quell opposition to its takeover of German haircare giant Wella by raising its offer for some outstanding shares.
P&G provoked the wrath of Wella investors – not least cosmetics rival Henkel – earlier this month with an offer of €61.50 ($67.45; £42.40) for the haircare group’s preference shares. That was considered too low by many shareholders, who wanted a price nearer the €90 offered for Wella’s ordinary shares [WAMN: 18-Apr-03].
The US giant has now raised its preference share price to €65, and is confident this will win over Wella’s management, many of whom it wants to retain.
However, it is not yet clear whether this will be enough to appease Henkel. Although the German cosmetics firm, which holds a 10.4% stake in Wella, cannot prevent the takeover, it can still stop P&G gaining the 95% control required to delist the haircare group.
Data sourced from: Financial Times; additional content by WARC staff