Shares Of Colgate-Palmolive (CL) Pop As CEO May Want To Sell

On Wednesday, shares of leading global consumer products company Colgate-Palmolive Co. (NYSE:CL) are popping, up over 5% to $75.25 per share in afternoon trading after the New York Post reported that its CEO, Ian Cook, could be open to a sale.

According to sources with knowledge familiar with the matter, Cook would be open to selling the company for $100 a share, which values Colgate-Palmolive at over $88 billion. The source said this price came at a meeting with institutional investors that occurred in recent weeks.

Colgate-Palmolive, which is known for its toothpaste, soap, and deodorant brands, has struggled with slowing demand for its products, and rumors of a takeover have swirled for a while now. Notably, there has been talk of possible interest by Unilever (NYSE:UL) , the London-based consumer goods giant that owns Dove soap and Hellmann’s mayonnaise, among other products.

"We as a company ... build value for our share owners and all the constituents in our company. And that is what we will focus on and let the rumors and speculation take care of itself," Cook said at Colgate’s annual meeting last Friday when an investor asked what he would do if Unilever made an offer.

Procter & Gamble (NYSE:PG) could potentially make an offer as well, as activist investor Nelson Peltz owns a stake in Colgate’s rival and may want to angle towards consolidation. Other possible bidders include Johnson & Johnson (NYSE:JNJ) and Kraft Heinz (NASDAQ:KHC) , which is owned by Warren Buffett and Brazil’s 3G Capital.

Currently, CL is a #3 (Hold) on the Zacks Rank, with a VGM score of ‘B.’

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