Henkel Hasn’t Sold 6.86% Wella Stake to P&G

Henkel KgaA, Frankfurt, said Wednesday that it hasn’t sold its 6.86% stake in hair care products maker Wella AG to The Procter & Gamble Co. Henkel has until midday to accept P&G’s offer of EUR65 for each preference share and EUR92.25 for each ordinary share.

In March, P&G paid EUR5.54 billion to buy 77.6% of Wella’s ordinary shares, giving it 50.7% of Wella’s total share capital. P&G said it wanted to gain 100% control of Wella, but has struggled to persuade minority shareholders, including Henkel, to accept its offer.

Minority shareholders are said to be upset that P&G is offering only EUR65 for each preference share when holders of ordinary shares with voting power are getting EUR92.25 a share. A host of minority shareholders represented by London-based Close Brothers, New York-based Elliott Associates and New York hedge fund Mellon HBV Alternative Strategies, owned by Mellon Financial Corp., argue that P&G’s EUR65 offer is undervalued.