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Gillette Faces Shareholder Suits

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By: TOM BRANNA

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Gillette is facing shareholder lawsuits related to its pending acquisition by Procter & Gamble, the company said Tuesday.

In the suits filed last month, Gillette shareholders allege the company’s board and management breached fiduciary duties in connection with the deal, Gillette said in a Securities and Exchange Commission filing. Two lawsuits filed on behalf of shareholders claim the transaction is “unduly favorable” to P&G, and will award Gillette managers with undue compensation.

Gillette chief executive officer James Kilts reportedly stands to receive $153.8 million of total compensation if the deal is completed. Included in the payoff are Gillette options, severance and a grant of P&G options and restricted stock.

The lawsuits hope to block the deal, as well as compensatory damages.

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