SSL slumps as bid talks collapse

By THIS IS MONEY
Updated:

 

BID talks at Durex condoms maker SSL have broken down, leaving shareholders nursing scorched fingers.

Shares in the group slumped 9%, or 31p, to 311 1/2p after it said the talks, widely believed to be with household goods giant Reckitt Benckiser, had failed to produce a definitive offer for the group. The fall wiped almost £60m off SSL's value to £591m.

The shares hit nine-month highs after news of the approach in July. 'SSL has taken a responsible attitude to this approach but could not satisfy itself that making more time available would have led to an offer,î said a spokesman.

The group said unrelated talks to sell its surgical gloves and medical bandages division were progressing well and that an announcement was expected soon. SSL decided to shed its medical arm in March to focus on developing its consumer range, which includes Durex, Marigold gloves and Scholl sandals.

Trading in the first five months of its new financial year, which began in April, was in line with expectations. SSL was on course to meet its full-year targets.

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