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P&G to Acquire Gillette for $57 Billion
AP via Wash Post ^ | 28 Jan 05 | Seth Sutel

Posted on 01/28/2005 8:26:00 AM PST by xzins

Further Details in Cincinnati News:

Cincinnati News

NEW YORK - Procter & Gamble Co., the leading U.S. maker of household products whose brands include Crest, Pampers, Tide and Charmin, is buying the razor and battery maker Gillette Co. for $57 billion in a deal that will create the world's biggest consumer-products enterprise, the companies announced Friday.

The merger, which must still be approved by regulators and shareholders, would create a company with revenues of more than $60 billion that would have even greater clout against mass-market retailers like Wal-Mart Stores Inc., which have been pressuring consumer product suppliers to keep costs low.

(Excerpt) Read more at washingtonpost.com ...


TOPICS: Front Page News; News/Current Events
KEYWORDS: business; consumer; gillette; pg; products
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To: Salvation

Oops--The spellcheck didn't get that! LOL!

And besides that the company founded by Rich DeVos and Jay VanAndel NEVER promoted or condoned a Proctor and Gamble boycott.



21 posted on 01/28/2005 8:51:04 AM PST by Salvation (†With God all things are possible.†)
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To: Salvation

Actually, Dobson's boycott has nothing to do with their corporate emblem.

It has to do with a local anti-gay ordinance that they worked to overthrow.

The stars and moons symbol comes from the 1800's when P&G was formed and is simply a man and the moon picture that was faddish at the time. I grew up in a P&G family, and then worked there myself for a while. We've known that story to be bogus for years.


22 posted on 01/28/2005 8:51:21 AM PST by xzins (Retired Army Chaplain and Proud of It!)
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To: Salvation; ASA Vet; BigSkyFreeper; Betaille

Actually, Dobson's boycott has nothing to do with their corporate emblem.

It has to do with a local Cincinnati anti-gay ordinance that they worked to overthrow...perhaps some of the soap opera influence, too....


The stars and moons symbol comes from the 1800's when P&G was formed and is simply a man and the moon picture that was faddish at the time. I grew up in a P&G family, and then worked there myself for a while. We've known that story to be bogus for years.


23 posted on 01/28/2005 8:53:23 AM PST by xzins (Retired Army Chaplain and Proud of It!)
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To: xzins

Thanks for setting me straight on that story. I didn't know about the labor disputes at all.


24 posted on 01/28/2005 8:54:28 AM PST by Salvation (†With God all things are possible.†)
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To: xzins
I remember some fifteen or 20 years ago, there was some brouhaha in the news about the P&G symbol.
25 posted on 01/28/2005 8:54:50 AM PST by BigSkyFreeper (PEST/Suicide Hotline 1-800-BUSH-WON)
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To: xzins

The story from fifteen or 20 years ago is starting to come back to me now, back then, it (the symbol) was attributed to some Satanic cult symbol. Completely unfounded and basically the story died on its own.


26 posted on 01/28/2005 8:57:11 AM PST by BigSkyFreeper (PEST/Suicide Hotline 1-800-BUSH-WON)
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To: BigSkyFreeper

Yeah, it was started by MLM businesses that were trying to undercut P&G's competition against their own overpriced products....Amway, Shaklee, others....


27 posted on 01/28/2005 8:57:32 AM PST by xzins (Retired Army Chaplain and Proud of It!)
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To: oceanview

If they don't, P & G will.


28 posted on 01/28/2005 8:57:34 AM PST by Eric in the Ozarks
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To: Eric in the Ozarks; oceanview

One of the big problems with overseas production of most consumer products is shipping. That's why P&G has focused on regional plants worldwide for years. They could have been bringing cheaper labor soap from overseas for years, but they haven't been.

A case of any of this stuff weighs a lot (roughly 8 lbs/gal) and the profit margin isn't that great. You'd have to freighter it from China to the US.


29 posted on 01/28/2005 9:03:11 AM PST by xzins (Retired Army Chaplain and Proud of It!)
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To: Salvation
There is no longer any Amway. Please educate yourself

Sorry to be so uneducated about my home town.

My local phone book has in it's business section:

Amway Capital Corporation
Amway Corporation (2 listings)
Amway Grand Plaza Hotel
Amway Products Distributors
Amway Products & Services IBO

30 posted on 01/28/2005 9:04:19 AM PST by ASA Vet (Those who know, don't talk. Those who talk, don't know.)
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To: xzins

Drudge has a headline on this, pointing out that Warren Buffet is worth $776 million more than he was yesterday. Not a bad day's work.


31 posted on 01/28/2005 9:19:58 AM PST by Cicero (Marcus Tullius)
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To: xzins

Tankers come in all sizes. Shore tanks are plentiful. The Houston ship channel could be the bottling point for your next jug of Tide.


32 posted on 01/28/2005 9:21:03 AM PST by Eric in the Ozarks
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To: Eric in the Ozarks

There must be some reason they haven't done it before now. My guess is shipping cost.

I'm not sure, but I think the major expense in P&G products is advertising and packaging that ties to the advertising.


33 posted on 01/28/2005 9:31:42 AM PST by xzins (Retired Army Chaplain and Proud of It!)
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To: xzins

P&G to Acquire Gillette for $57 Billion,



EXCELLENT! -- Mr. Burns


34 posted on 01/28/2005 9:39:54 AM PST by sully777 (our descendants will be enslaved by political expediency and expenditure)
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To: xzins

Amazing. I wish I knew the rationale, the structure of the deal, and the investment banking fee.


35 posted on 01/28/2005 9:41:30 AM PST by the invisib1e hand (Leftists Are Losers.)
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To: Cicero

Buffett: 'It's a dream deal'Billionaire investor sees longstanding bet on Gillette pay off with one-day gain of $776 million.
January 28, 2005: 11:08 AM EST

NEW YORK (CNN/Money) - Legendary investor Warren Buffett had nothing but praise Friday for Proctor & Gamble Co.'s $57 billion deal for Gillette, which helped him make $776 million -- in one day.

"This merger is going to create the greatest consumer products company in the world," said Buffett, whose Berkshire Hathaway holding company is Gillette's largest shareholder with 96 million shares, or about 9 percent of the company.

"It's a dream deal," he said, adding that he would increase his holdings so that he would end up with 100 million shares of P&G by the time the deal closes. Under the offer from P&G, Buffett's Gillette stock would translate to about 93.6 million shares of P&G.


Even for a billionaire like Buffett, who is one of the country's wealthiest men and one of the world's most widely following investors, $776 million is not bad for a day's work.

That's the apparent one-day paper profit Berkshire Hathaway would realize from Procter & Gamble's purchase of Gillette -- based on the deal's premium of about $8.09 a share on each of the 96 million Gillette shares.

Buffett is poised to become P&G's biggest shareholder after the deal. Barclays Global Investors is now the largest shareholder with about a 3.6 percent stake, according to Factset Research. But dilution from the deal would lower its stake, and its roughly 92 million shares would be less than what Buffett will end up with.

Buffett has been Gillette's largest single stockholder since 1989, when his firm bought $600 million in preferred stock, establishing an 11 percent stake in the maker of razors and other men's products, according to news reports. At the time, Gillette had recently fought off two hostile takeovers.

"Over that time we've been happy with that investment but I've got to tell you I'm happier today," Buffett said in a statement played Friday during a conference call to discuss the deal.


36 posted on 01/28/2005 9:50:53 AM PST by xzins (Retired Army Chaplain and Proud of It!)
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To: xzins

They liked their razors so much, they bought the company.


37 posted on 01/28/2005 9:51:38 AM PST by dfwgator (It's sad that the news media treats Michael Jackson better than our military.)
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To: dfwgator

:>)

What was that guy's name???


LOL!


38 posted on 01/28/2005 9:53:51 AM PST by xzins (Retired Army Chaplain and Proud of It!)
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To: xzins

Victor Kiam was the guy, he bought Remington. He was also the owner of the Patriots at one time. Ironically, now the Patriots play in Gillette Stadium.


39 posted on 01/28/2005 10:15:46 AM PST by dfwgator (It's sad that the news media treats Michael Jackson better than our military.)
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To: ASA Vet

I've heard some really really bad things about Amway


40 posted on 01/28/2005 10:32:02 AM PST by Betaille (Harry Potter is a Right-Winger)
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