[WSJ] Kimberly not looking for ‘transformational’ M&A

By Paul Ziobro

NEW YORK -(MarketWatch)- Kimberly-Clark Corp.’s KMB +0.03% chief executive ruled out any “transformational” mergers or acquisitions, pouring cold water on activist investor Carl Icahn’s suggestion that the company should consider buying Clorox Co. CLX -0.58%

Icahn earlier this month made an offer to buy Clorox, but suggested that other consumer-product companies, including Kimberly-Clark, should consider making an offer due to attractive synergy opportunities.

Monday, Kimberly-Clark Chief Executive Tom Falk said that the company’s long-term plan doesn’t include any major deals. “I don’t think the announcements related to Clorox change that point of view,” Falk said.

He added that Clorox is a well-managed company and that “it’s hard to see how we can do a better job of that.”

Clorox is fending off Ichan’s bid for the company. After rejecting an earlier bid as too low, Clorox is evaluating Icahn’s latest bid of $80 a share, which values the company at $10.7 billion.

Falk made the comments after Kimberly-Clark earlier reported an 18% decrease in second-quarter profit, and warned that earnings for the year would come in at the bottom half of guidance unless costs abate.

Kimberly-Clark shares were down less than 1% at $67.33 in recent trading, while Clorox shares were down about 1% at $73.06.

http://www.marketwatch.com/story/kimberly-not-looking-for-transformational-ma-2011-07-25

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