BEECHAM BID MAY UNSEAT AMERICAN HOME FOR NORCLIFF THAYER
BEECHAM BID MAY UNSEAT AMERICAN HOME FOR NORCLIFF THAYER in opening round of the Revlon auction. Following completion of the Pantry Pride takeover of Revlon, the new owner reportedly is leaning to a bid from Beecham for Revlon's OTC business (Oxy, Tums, and Liquiprin). The previous Revlon management had arranged a deal with American Home Products for the sale of Norcliff Thayer and Reheis Chemicals at an estimated price of $355 mil. Beecham's new offer is understood to be in the $400 mil. range for the same OTC/chemical package. The improved offer for Norcliff Thayer, on top of the generous American Home offer, gives the Pantry Pride takeover gambit a quick boost in credibility with other potential Revlon bidders. If Pantry Pride can get a better offer for Norcliff Thayer than American Home's bid, it suggests that the new Revlon owner will not be pressured to accept bids for the other segments of the company below levels discussed in the Revlon buyout attempt. Pantry Pride may, for example, want to take a closer look at the Adler & Shaykin $900 mil. offer for the Revlon beauty care business. The $400 mil. bid would put pressure on Beecham to find ways for a rapid pay back from Norcliff. In 1982, when Beecham bought J. B. Williams from Nabisco, the company made quick and extensive cuts in the Williams workforce and folded the product line into the existing Beecham structure. In addition to Oxy, Tums and Liquiprin, Norcliff Thayer markets a laxative Nature's Remedy, Esoterica Medicated Fade Cream, and A-200 Pyrinate, a pediculicide. None of the three companies affected by the new bid would comment on the possible sale.
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