|
P&G, whose brands include Pampers diapers and
Tide detergent, said it would contribute about $1.8 billion in
cash to recapitalize Duracell before the transaction.
Shares of P&G, which also reiterated its full-year organic sales
and core earnings growth forecasts, fell about 1 percent before
the bell.
The household products maker said in August it could sell about
half of its slow-growing brands and last month said it would
sell Duracell to focus on faster-growing brands.
Demand for Duracell's mainstay non-rechargeable, disposable
alkaline batteries has waned while a worldwide explosion in
electronic devices has increased demand for re-chargeable
batteries.
Berkshire owned about 52.8 million shares in P&G as of June 30,
or a stake of about 1.9 percent, according to the most recent
regulatory filing. (http://1.usa.gov/1lZ2Ca3)
"I have always been impressed by Duracell, as a consumer and as
a long-term investor in P&G and Gillette," Berkshire Hathaway
Chief Executive Warren Buffett said in a statement.
P&G said it would take a non-cash charge of about 28 cents per
share in the current-quarter and said it expects to close the
deal in the second half of next year.
Goldman Sachs & Co is P&G's financial adviser and Jones Day
acted is its legal adviser.
(Reporting by Devika Krishna Kumar and Yashaswini Swamynathan in
Bangalore; Editing by Savio D'Souza)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
