Shares in the German consumer-care group surged following media reports of an imminent takeover bid by French cosmetics giant L'Oréal, which has so far declined to comment.
Creating beauty the French way
Reports of an imminent takeover bid by French cosmetics giant L'Oréal of consumer-care group Beiersdorf AG led shares in the German group to surge by up to 11 percent earlier in the week. According to a report in British newspaper "Independent" on Sunday, L'Oréal plans to make a 13 billion euro bid for Beiersdorf, best known for its Nivea brand, in the next few weeks. The French group declined on Monday to comment on the report.
In a German radio interview, a spokesman for Beiersdorf expressed surprise at the reports of L'Oréal’s takeover plans. But he confirmed that Beiersdorf's major shareholder, Allianz AG, plans to sell its shares.
The "Independent" on Sunday reported that Beiersdorf's range of products would perfectly complement that of L'Oréal, which focuses mainly on hair-care products. But citing sources within the French group, the paper said that L'Oréal would sell some of Beiersdorf's divisions, for example the band-aid business.
With a stake of 40 percent, Allianz is Beiersdorf's largest shareholder, followed by retailer Tchibo with a 30 percent stake. There has been repeated speculation that Tchibo is planning to acquire Allianz's shares. The bank assurance giant plans to sell off all of its industrial shareholding interests in the medium term. Shares in
Beiersdorf closed up 7.36 percent at 135 euro.