David Prosser: Another twist to come at SSL?
Thursday 22 July 2010
Outlook Farewell, then, SSL International, the condom-to-footwear combine now being lined up for a sale. Nevertheless, investors should not assume – as many in the market seemed to yesterday – that Reckitt Benckiser's offer for the business is absolutely the last word on the sale process. While SSL recommends the Reckitt offer, other bidders may yet emerge.
Not that this is a bad deal. At a 30 per cent plus premium to the closing price of SSL's shares on Tuesday evening, Reckitt has not been stingy. This is a valuable business that has been going places quickly since putting an accounting scandal behind it a few years ago. Durex is one of very few brands that is so well-established that it is synonymous with its product for many customers around the world. And both it and Scholl have proved to be generally recession-proof.
Above all, however, there is the transformational deal that SSL itself pulled off last year in taking full control of BLBV, the Russian condom business in which it has had a stake for four years. The market has huge potential, both for condoms and for a launch of the Scholl brand.
An attractive asset then, but are there credible rivals to Reckitt for SSL's hand? In short, yes. Merck and Bayer of Germany are possible bidders, according to some City analysts, while Procter & Gamble is a longer shot. Maybe even our own GlaxoSmithKline.
In other words, Reckitt may have received a positive answer to its proposal, but consummation is not yet certain.
- 1 Rules on 5p plastic bags likely to lead to arguments at the check-out
- 2 Hulk Hogan wants to be Donald Trump's running mate in the US Presidential election
- 3 Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
- 4 News agency criticised for describing Amal Clooney as 'actor's wife' in coverage of human rights trial
- 5 David De Gea to Real Madrid: Real finally get their man with £29m bid for Manchester United goalkeeper
Rules on 5p plastic bags likely to lead to arguments at the check-out
Watch the Supermoon live: How to see the brightest Moon of the year tonight
Hulk Hogan wants to be Donald Trump's running mate in the US Presidential election
Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
Turkey duped the US, and Isis reaps rewards
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
Tony Blair attacks Jeremy Corbyn's 'Alice In Wonderland' politics
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...
£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...
£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...
£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...