Wella Shares Jump 17% from Talks of P&G Bid

Shares in German hair care group Wella jumped as much as 17% on Feb. 27 in Germany, with traders pointing to a report that U.S. consumer products giant Procter & Gamble was ready to offer approximately $86 a share for the firm.

Industry sources said that P&G had joined other firms circling Wella after P&G’s approach to Nivea-owner Beiersdorf got stuck in a standoff between the company’s two major shareholders. The family that owns Wella was close to reaching agreement, a source said.

Shares in Wella were trading 7% higher at approximately $63. Wella declined to comment on the latest report.

“It doesn’t look like this contains anything new. Procter & Gamble have more than once alluded to Wella in a positive way, and we already knew that Henkel had bid up to $86 for Wella,” said a London-based analyst. “I still think they would be better off with Beiersdorf.”

Analysts have said that it is unlikely that the Stroeher family who control Wella would accept less than a $75-86 per share offer made by Henkel last October, which sources said at the time had been rejected as too low.