JAB, the biggest shareholder in Anglo-Dutch consumer goods firm Reckitt Benckiser, has sold around a third of its holding in the firm, seemingly to fund a takeover in the US.
Vienna based outfit JAB's broker has placed 36m shares - equivalent to around 4.9% of the issued share capital of Reckitt - with institutional investors.
The shares of the Cillit Bang and Finish maker went at £33.50 a pop, raising a total of £1.2bn for JAB, which is tipped to use the money to fund an attempted takeover of Avon Products, the cosmetics giant in the US.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The transaction reduces JAB's stake in Reckitt from 15.5% to 10.6%.
JAB's decision to reduce its stake was announced after the close of trading in London on Wednesday, so the market saw this one coming. Reckitt Benckiser shares dropped 145p in the first hour of trading to 3,421p, 71p above the price at which JAB's shares were placed.
BS
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
