Warner-Lambert Discusses Deal With P

Executives of Warner-Lambert Co., searching for a white knight to save the drug maker from a hostile takeover by Pfizer Inc., have held several high-level meetings with their counterparts at Cincinnati-based Procter & Gamble Co. to test their interest in a deal, according to people familiar with the discussions. Pfizer has offered to pay $79 billion for Morris Plains, N.J.-based Warner-Lambert, which makes the widely successful cholesterol drug Lipitor, as well as consumer products that might fit well under the P&G; umbrella, such as Certs breath mints and Schick razors. Warner-Lambert said last week that it would consider New York-based Pfizer’s offer, which is superior to a $57-billion bid that Warner-Lambert accepted in November from American Home Products Corp. of Madison, N.J.

Meanwhile, Warner-Lambert posted a better-than-expected 40% jump in profit for the fourth quarter to $487 million, or 55 cents a share, with help from soaring sales of Lipitor. Total revenue grew 16% to $3.53 billion. Sales of Lipitor grew 56% to $1.1 billion. Sales of Neurontin, an epilepsy drug, also surged, by 79% to $294.1 million. The company said it raised its projection for 2000 per-share earnings to $2.45, an increase of 25%. A 20% increase had been expected.

Warner-Lambert’s strong earnings and the possibility of a bidding war for the company sent its shares up $4.81 to close at $94.81, a 52-week high, on the New York Stock Exchange. P&G; closed off $1.56 at $115.38, Pfizer closed up 50 cents at $37 and AHP closed up $1.81 at $46, all on the NYSE.