The Veet hair removal system for hairy gorillas is flying off the shelf.

This surely has to be a buy? DYOR

http://www.reckittbenckiser.com/

Just gone long @3154.

Just closed these @3387 +233.

Nice skinny!

Took my eye off the ball here - showing some recent strength - no doubt a bid rumour will surface!

Household goods and healthcare products conglomerate Reckitt Benckiser continued to attract buyers, adding 52p at 3,540p, as bid rumours persisted, with Unilever in the frame. Unilever shares dipped 2p at 2,035p in response.

About par for the course!

From the Guardian
Reckitt Benckiser, the maker of Cillit Bang and Dettol, was the day's speculative tale, up 35p to 34.88 on renewed talk of a possible offer for the company at around 50 a share. The supposed predator was Unilever, 25p higher at 20.37, with traders suggesting the Anglo-Dutch group could sell on any unwanted Reckitt brands to US rival Colgate-Palmolive. The timing would be interesting - Reckitt's long standing chief executive Bart Becht is due to step down in September.

Reckitt Benckiser, the maker of Cillit Bang and Dettol, gave support to the market following speculation that Unilever and Proctor & Gamble were circling the company for a takeover bid. Shares were ahead 61p at 3549p.

Read more: http://www.thisismoney.co.uk/money/markets/article-2011365/FTSE-LIVE-Services-provides-boost-Reckitt-climbs-Unilever-bid-talk.html#ixzz1RFDXvajK

I've updated post 22 to show volume.

From FT.com/Alphaville - Neil Hume
Depending on which publication you read this morning, Reckitt was either going to be acquired by either Proctor & Gamble or Unilever for anything between 40-50 a share (curiously round numbers arent they? Ed.)

Now, one should never say never, but a bid from either company looks to be a long shot, says the sectors top-rated analyst, Andrew D Wood of Sanford Bernstein:

Given the sustained speculation of a potential bid for RB, I thought it might be worthwhile re-distributing this report we published in April. It primarily looks at potential anti-trust issues for the usual suspects (P&G, Unilever, Colgate), but we also make comments on the potential for acquisition as well. In particular I would highlight the following extract from the report:

Our [anti-trust] analysis is not definitive, and clearly could be addressed by joint bids or bids where the bidder is prepared to accept significant remedies in order to get the deal donebut it does suggest that any hope that RB could be subject to aggressive pursuit from P&G are slim. Unilever could probably pursue RB, but we believe that the business is still in turnaround show me mode under a fairly new CEO, and an aggressive pursuit of a 29bn (32bn, $47bn) acquisition, assuming an acquisition price of 40, would not get the support of the board or investors. RB is also probably too big for Colgate to swallowbut a merger of equals could be considered, and anti-trust issues would not preclude the deal.

Hmm, a merger with Colgate. That has also been rumoured and its said to be the real reason behind Bart Bechts surprise departure from Reckitt. He was pushing for a transformational merger and the board blocked him.

And its certainly a goer.

Colgate would have only minor issuesmostly limited to surface care from a category perspective and Greece and Australia from a country perspective. We estimate that only 3% of RBs sales in the EU would be at high risk or risk of anti-trust issues, and only 6% of sales globally. Once again, anti-trust remedies would probably not preclude a deal.

As opposed to bid from P&G

P&G would find it difficult to get a deal done. We see significant anti-trust issues in a number of important categories (Surface Care, Auto Dishwash, Laundry Aids and Depilatories) in a number of countries (US, Canada, most of the EU). We estimate that 44% of RBs sales in the EU would be at high risk or risk of anti-trust issues, and 31% of sales globally. We conclude that required anti-trust remedies would probably block a deal.

Wood reckons the real reason Reckitt has rallied today is a growing appreciation of its fundamentals - steadily improving core markets and sales growth as 2011 progresses , good news and more bullish guidance on the Pharma business (especially the transfer from Suboxone Tablets to Film) and strong success with the integration of Durex condom maker SSL.

Whilst I do trade RB, I've gone long ULVR. It has been in a recent uptrend which stalled today. I'm hoping that if the bid comes to nothing, there may be some upside with ULVR.

Citibank note:
"Reckitt closed up 3% yesterday on speculation that Unilever or Procter are going to make a bid. The thesis is, without a strong CEO, Reckitt is now more vulnerable to a takeout. We think this is unlikely however given the lack of synergies for a potential acquirer and, speaking to clients yesterday, the feedback is that they definitely agree. We saw busy two way flow in the name yesterday but most of the buyers were really covering their short positions. It sounds like sellers on the other side are taking profits after a 20% run off the lows. We think Q2 numbers aren't going to be great & that you could see some profit taking short term. However, on a longer term view, we remain buyers of Reckitt. Whilst we don't believe in the takeout story, we think top line growth is underestimated - Claire is 3% ahead of consensus & this is one of the few names in Consumer Staples eps momentum this year => Short term profit taking in Reckitt, Long term this is a stock to own."

Vindication then! I didn't quite have the nerve to short RB though!

Out of ULVR +37. RB down again hmmmmm.

Just gone long @3450.

Just closed +42 - its not looking very nice out there!

Half Year Results 2011.

Half Year (HY) highlights:

* Total net revenue growth of +15% (constant exchange) to 4,621m. LFL growth
+5% (+4% ex-RBP).

* Gross margin -70bp to 59.3%: adjusted operating margin +20bp to 23.9%.

* SSL integration on track: cost synergies of 33m delivered in the half
year.

* Adjusted net income +10% (actual exchange, +12% constant): adjusted diluted
EPS of 109.0p (+10%).

* Net working capital of minus 932m, reflecting a further improvement versus
31 December 2010.

* Net debt of 2,195m (31 December 2010: 2,011m), with strong free cash flow
generation being more than offset by the payment of the final 2010
dividend, the acquisition of Paras Pharmaceuticals Limited and cash
restructuring payments.

* The Board declares a +10% increase in the interim dividend to 55.0p per
share.

Reckitt Benckiser: This will be the first set of trading figures that Reckitt Benckiser's new chief executive, Rakesh Kapoor, has unveiled, due Tuesday 25th Oct

He's fortunate to have inherited a strong business, behind brands such as Cillit Bang and Vanish, but the era of steady sales growth being guaranteed is over. In the first half, European sales fell by 1pc and investors will want to know how Reckitt is coping with an even more competitive environment.

The company is expected to reiterate its full-year target of a 12pc rise in net revenues and a 10pc increase in net income growth, thanks to steady growth in developing markets.

3rd Quarter Results.

Q3 highlights (at constant exchange unless stated):

- LFL growth (excluding SSL and Paras) +4% (+3% ex-RBP).

- SSL net revenue growth of 5% to 227m.

- Total net revenue growth of +15% to 2,448m.

- Adjusted net income +10% (actual exchange, +10% constant).

Year to date highlights (at constant exchange unless stated):

- LFL growth (excluding SSL and Paras) +4% (+3% ex-RBP).

- SSL net revenue growth of +2% on a comparable basis to 652m.

- Total net revenue growth of +15% to 7,069m.

- Adjusted net income +10% (actual exchange, +12% constant).

- Net working capital of minus 941m (YE 2010 914m). Net debt of
2,172m (YE 2010: 2,011m), with strong cash flow offset by two dividends,
acquisitions and restructuring.

Although Reckitt Benckiser lost its shine last week after cautioning of slower growth in the final quarter, the maker of Mr Sheen and Cillit Bang was yesterday wanted for its defensive attractions. With renewed takeover whispers also swilling round, Reckitt rose 57p to 32.55.