Clorox Urged To Buy Back Henkel Stake

Clorox earnings would receive a sharp boost, if the company decides to buy back the 66 million shares currently owned by Henkel, according to a new Credit Suisse First Boston (CSFB) research article mentioned in a Forbes report. The Henkel block is equivalent to nearly 30% of Clorox’s stock, according to CSFB.

CSFB noted that when Henkel acquired Dial earlier this month, the German company said it was considering selling its stake in Clorox. Several days after the Dial deal, Henkel sold about 1.6 million Clorox shares, though it has not given details of any plan to liquidate the entire holding. According to the research firm’s calculations, Clorox’s annual earnings would be lifted 15%–and its discretionary cash flow also would receive a significant boost–if it were to buy the remaining Henkel block.

CSFB said it appears that the most serious worry for Clorox would be whether or not it could both buy back the Henkel stake and maintain an investment grade status, given that such a purchase would triple Clorox’s debt load. In order not to overburden the debt load, CSFB suggested that Clorox consider buying back the stake from Henkel and then offering some portion of the shares for sale.

Skinvisible Cancels Marketing Rights for Health First

Skinvisible, Inc., Las Vegas, through its wholly owned subsidiary Skinvisible Pharmaceuticals, Inc. Skinvisible, said as a result of Health First’s failure to provide a $100,000 non-refundable deposit and other conditions preceding a formalized license agreement, the company has terminated negotiations for exclusive marketing and distribution rights to Skinvisible’s Triclosan 1% antimicrobial hand sanitizer formula.

In other news, Edward Fitzpatrick has terminated an agreement with Skinvisible to provide market research on atleast 16 Skinvisible sub-licensees in Europe.