In the article "Procter & Gamble buys Gillette" Procter & Gamble has made a huge move in wanting to buy The Gillette Company. The stock deal is valued at $54 million dollars. There are those people out there like the Wall Street analyst’s that think it is not a good idea or that it is overpriced. The reasons that they feel this way is because their will be some overlap in a few brands such as deodorants, teeth whiteners, and toothbrushes. Another reason is the advertising and being able to distinguish between the different products. However, I think that it is one smart move by Procter & Gamble. Because with all of the resources that the two companies already have they will be able to combine efforts and resources, and this will create great strength for them that will be hard to compete with.
1 comment:
-1 for being off by 3 zeros in your post Harry (waived)
-1 on June's comment for spelling errors (waived)
The big thing to remember about mergers and acquisitions is that the acquirer (Procter and Gamble in this case) - on average - is not making a good decision. So, P&G stock is likely to fall. The shareholders of the acquiree (Gillette in this case) tend to make out because the acquirer is paying too much.
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