Option update: P&G (PG) asset sale and Hershey (HSY) CEO resigns

Posted Oct 2nd 2007 9:10AM by Paul Foster
Filed under: Before the Bell, Management, Hershey Co (HSY), Procter and Gamble (PG), Options

Procter & Gamble (NYSE: PG) closed at $70.91.

On 10/1/07 The Financial Times Merger Market reported PG is looking to sell its Duracell unit, as well as its Pringles and Folgers units according to sources close to the matter.
PG overall option implied volatility of 19 is near its 26-week average of 18 according to Track Data, suggesting non-directional risk.

Hershey (NYSE: HSY) closed at $47.41.

HSY Chairman and CEO Rick Lenny resigned.
Alex Brown says: "We retain our Hold opinion, but lower our target from $48 to $45. With CEO Lenny leaving at 2007-end, we believe fundamental pressures and less likelihood of sale point to a lower valuation."
HSY overall option implied volatility of 23 is near its 26-week average of 22 according to Track Data, suggesting non-directional risk.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Tags: Alex Brown, AlexBrown, duracell, folgers, hershey, hsy, inthenews, pg, pringles, procter and gamble, ProcterAndGamble, rick lenny, RickLenny, The Financial Times Merger Market, TheFinancialTimesMergerMarket

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Reader Comments (Page 1 of 1)

10-02-2007 @ 8:29PM

Seth said...

P&G retained the Blackstone Group to advise them on selling Duracel, Pringles, and Folgers. Interestingly enough, according to NewsVisual P&G and Blackstone have some surprisingly strong ties through the Council on Foreign Relations http://www.newsvisual.com/newsvisual/2007/10/council-on-fore.html Most likely the early stages of the deal started here.