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P&G Hasn’t Formally Bid for Beiersdorf Stake

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By: TOM BRANNA

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Germany’s Federal Financial Supervisory Agency, BaFIN based in Frankfurt, said U.S. firm Procter & Gamble Co. hasn’t made a formal offer for Beiersdorf AG . Beiersdorf’s stock price shot up 19% on Wednesday, Dec. 11 on news that P&G wanted to take a 44% stake in the consumer goods company which owns the Nivea brand.

German magazine Focus-Money reported late Tuesday that P&G was offering $5.54 billion for a 44% stake in Beiersdorf presently owned by insurer Allianz AG Holding. But BaFIN said it hadn’t been notified about a formal offer. Under German law, BaFIN and all other shareholders need to be informed about any formal offer for more than 30% in a publicly listed company. Beiersdorf said it was unaware of a formal offer. Allianz said it wouldn’t comment on market speculation.

P&G would probably need to restructure Beiersdorf to get any synergies from a deal, analysts said, citing Beiersdorf’s $151.27 a share. Restructuring efforts may prove difficult as long as Tchibo Holding AG , which owns 31% of Beiersdorf, isn’t prepared to reduce its stake below 25%. In fact, analysts said Tchibo is interested in increasing rather than decreasing its stake in Beiersdorf.

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