Household goods giant Reckitt & Colman is understood to be the target of a hostile takeover bid with Anglo-Dutch conglomerate Uni-lever emerging as a possible white knight.
Unilever bought the Colman’s food business from Reckitt last year. Since then the company has embarked on a global cost-cutting drive, restructuring its operations and appointing McCann-Erickson Worldwide as its global advertising agency in January.
A City source says that talks have taken place between the two following rumours that a mystery company is planning an audacious bid to buy and break up the household goods and pharmaceuticals business. Reckitts’ over-the-counter (otc) drugs business includes Lemsip and Gaviscon.