The Gillette Company said yesterday it received a $4.66 billion takeover offer from Revlon Group Inc., which had made an unsuccessful bid for Gillette seven months ago. However, under terms of a ``standstill agreement'' the companies reached after the initial takeover battle, Revlon now must first obtain the consent of Gillette's board of directors to launch a new buyout offer.
Gillette said Revlon, the New York-based cosmetics giant, delivered such a request to the Boston-based company late Wednesday, in which Revlon offered to pay at least $40.50 in cash for each of Gillette's 115 million common shares outstanding.
Gillette, a leading producer of razors and other personal products, said a response to Revlon's proposal was expected after a board meeting.
Takeover speculation has swirled around Gillette since Revlon's initial bid in November, which Gillette strenuously fought. At that time, Revlon owned about 14 percent of Gillette's 66.4 million shares then outstanding and offered $65 a share, or $4.12 billion, for the rest.
Later that month, however, Gillette thwarted the takeover threat by repurchasing Revlon's shares for $558 million, including $9 million to reimburse Revlon for its expenses, thereby giving Revlon a profit of about $34 million on its Gillette investment.
Gillette also repurchased an additional 10 percent of its shares from its other shareholders.