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Industry Chatter: Colgate-Palmolive and Unilever?
Posted: July 17, 2007
Shares in Unilever reportedly rose more than 2% in the last week thanks to speculation in the market that Colgate-Palmolive Co. may be interested in acquiring all or part of the company, according to AP. Unilever, with such personal care brands as Pond's, Closeup, Sunsilk, Vaseline, Dove soap and Axe antiperspirant, did not return a call seeking comment, reported AP.
Shares in New York-based Colgate-Palmolive, whose brands include Colgate, Palmolive, Mennen, Softsoap and Irish Spring, rose 1% to US$66.43 and the company is valued at approximately US$33.64 billion, claimed reports.
"We do not comment on rumors as a matter of policy," said Allison Klimerman, a Colgate-Palmolive spokeswoman, in the press announcement.
According to reports, shares in Unilever rose 2.2% in London to close at 1,683 pence (US$33.96), putting the company's market capitalization at about £22.1 billion (US$44.6 billion).
Market analysts at Oppenheimer noted that it has long been believed that Unilever wanted to acquire Colgate-Palmolive someday, and that there would be substantial cost synergies, especially in Latin America, where both companies have strong market positions, according to an AP report. However, the reverse situation—that Colgate-Palmolive may acquire Unilever—is less expected.