Thursday, May 18, 2017
Colgate-Palmolive’s CEO, Ian Cook, recently signaled he would be open to selling the company – which has grappled with sluggish demand for its toothpaste, deodorants and food products – for US$100 a share, according to a New York Post article.
The $100-per-share price tag, which would value the consumer-products giant at more than US$88 billion, was mentioned during a meeting with institutional investors that took place in recent weeks, a source with knowledge of the conversation told the Post.
Rumors about possible deals – potentially with Unilever – have swirled around the New York-based conglomerate, which has struggled to increase sales of its household staples.
Aside from the Unilever chatter, speculation has been stoked partly by the fact that activist Nelson Peltz owns a stake in Procter & Gamble, and may be looking to spark sector consolidation, the news report says. Other possible suitors include Johnson & Johnson as well as the partnership formed by billionaire Warren Buffett and Brazilian conglomerate 3G Capital, which owns Kraft Heinz.