Rumors Boost Vicks’ Stock $10 Per Share

Rumors that Richardson-Vicks, the maker of Vicks cold remedies, had enlisted help to fight off a hostile takeover bid from the British-Dutch giant, Unilever NV, helped boost the company’s stock Monday by $10 a share.

Investors bid Richardson-Vicks stock up $10, to $63.50 a share, on the New York Stock Exchange with a total of 2.8 million shares changing hands.

Monday’s close left Richardson-Vicks’ stock higher than the $60 a share offered last Thursday by Unilever, and might signal that Richardson-Vicks was hoping for a bidding war as a way to avoid being acquired by Unilever, analysts said.

Repeated Offers

Unilever indicated concern when it said a letter was being sent to Richardson-Vicks’ directors reminding them of repeated offers to meet to talk about Unilever’s offer.

In addition, Unilever said it was urging Richardson-Vicks to furnish any information given to third parties and to avoid measures aimed at thwarting Unilever that might adversely affect its own shareholders.

Pfizer, whose name has surfaced as a possible “white knight” for Richardson-Vicks, refused to comment on the rumors.

Several other companies have been suggested as potential suitors for Richardson-Vicks, including Chesebrough-Ponds, Colgate-Palmolive and Procter and Gamble.

The struggle between Richardson-Vicks and Unilever has been a bitter one.

Unilever has offered $60 a share or about $900 million if Richardson-Vicks cooperated, but said it would lower its bid to $48 a share if it does not.

Anti-Takeover Measures

In an attempt to block Unilever, Richardson-Vicks adopted a series of anti-takeover measures, including issuing a new preferred-share series that would give expanded voting rights to current stockholders.

Unilever sued Richardson-Vicks over the preferred shares and won a preliminary injunction barring Richardson-Vicks from issuing the shares.