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Gillette said to cut out P&G
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January 24, 2000: 6:31 a.m. ET
Report: Razor maker rebuffed Procter & Gamble's merger talks offer
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NEW YORK (CNNfn) - Procter & Gamble Co., the household products maker in talks to acquire to Warner-Lambert Co. and American Home Products Corp., backed away after seeking to discuss a possible merger with razor maker Gillette Co. several weeks ago, according to a report published Monday.
The Wall Street Journal said P&G chief executive Dirk Jager sent a letter to Gillette seeking to discuss a possible deal between the two companies. The newspaper reported that no price was mentioned.
Gillette was reported to have responded negatively to the letter, bringing together a defense team of lawyers and bankers. The Journal said Jager backed off from that deal, but was enticed after talks with an investment banker to consider the Warner-Lambert and AHP acquisition.
Procter & Gamble announced last Friday that it is in talks with the two drug companies, who have a $56.5 billion merger agreement of their own. Warner-Lambert is seeking to avoid the clutches of Pfizer Inc., which has made an unsolicited $77.7 billion bid.
The announcement of the talks sent P&G (PG) stock tumbling 9-7/8 Friday to 102-11/16. Gillette (G) rose 1/8 to 39, Warner-Lambert (WLA) fell 1-3/4 to 92, American Home Products (AHP) climbed 1-7/8 to 48, and Pfizer (PFE) was down 1-5/16 to 35-1/16. 
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