Gillette sweetens locals with charity pledge
homelessness in the Greater Boston area. The move comes amid rumors
that the company's merger with P&G could threaten hundreds of
jobs in the city as well as reports that tough European competition
authorities are about to approve the deal, reports Simon
Pitman.
The $10.5 billion Boston-based consumer-products giant said grants totaling $400,000 from the Gillette FaceForward Homelessness Prevention Program were awarded to seven organizations to help more than 500 Greater Boston families keep their homes.
The remaining $400,000 will be awarded later this year, following a second round of solicitations scheduled for July. The company says that the funding will provide up to 4,000 days of foster care for children who otherwise would 'age out' of the foster-care system when they turn 18.
Although Gillette has supported efforts to provide emergency shelter in its hometown since 2002, industry observers and politicians may be questioning the motives behind the act of charity.
One individual who is certain to do so is Massachusetts Secretary of State William Galvin. Galvin is currently locked in a courtroom battle against Gillette, claiming the terms of the proposed $57 billion deal with consumer giant Procter & Gamble undervalues Gillette by up to $15 billion.
Galvin is also worried about local jobs. He claims that the Boston is likely to bear the brunt of the 6,000 people expected to lose their jobs to synergies with P&G. Boston is currently the headquarters for Gillette, making it one of the biggest employees in the city.
Job losses are not the only aspect of the deal that concern Galvin though. The $140 million-plus that Gillette chairman James Kilt is expected to make out of the deal is a point of contention.
For many, making matters worse is the fact that Kilts has also been appointed to the board of the New York Times Company, which owns local paper The Boston Globe. Media reports say that Kilts' election to the board may risk the newspapers ability to report on the acquisition process in an impartial manner.
But things are not looking all bad for Gillette. Recent reports that EU competition authorities might take longer than first though to agree the deal could turn out to be false after The Wall Street Journal yesterday reported that the antitrust regulators are close to giving their approval.
Whatever happens, it looks certain that P&G's proposed merger with Gillette should prove to be a far from dull occasion.
