US: Speculation Surrounds Colgate-Palmolive Future

The future of Colgate-Palmolive is once again the focus of speculation, after some media reports said the company may be open to a sale given the right valuation.

According to the New York Post, which cited an unnamed source, CEO Ian Cook told institutional investors at a recent meeting that he would open to a buyout offer of $100-a-share, which would value the group at around $88bn.

The report follows recent speculation that Unilever or Procter & Gamble may be considering a move for the company. Other reports this week have cited Kraft Heinz as a potential suitor, noting that the group is looking to expand, particularly after the failure of early merger talks with Unilever. The reports said Kraft Heinz is lining up financing for the deal, as it looks to move beyond the food market.

Neither Colgate-Palmolive nor Kraft Heinz have commented on the latest reports.

NAM Implications:
  • Even speculation can be worth pursuing as an aid to exploring options.
  • In other words, how about conducting some ‘what ifs’ re acquisition by Kraft Heinz, Unilever or Procter & Gamble.
  • With Kraft Heinz likely to have least opposition from the competition authorities.