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Biotech / Medical : SAFESKIN -- Ignore unavailable to you. Want to Upgrade?

To: Beltropolis Boy who wrote (565)	1/29/1999 4:45:00 PM
From: TheDad	Read Replies (1) \| Respond to of 828

FYI Analysts say PacDun bid for LIG unlikely January 28, 1999 08:31 PM By Michael Stapleton MELBOURNE, Jan 29 (Reuters) - Market speculation that Australia's Pacific Dunlop Ltd is the mystery suitor for British surgical glove and condom maker London International Group Plc (LIG) was played down by local analysts on Friday. "Because it still hasn't offloaded its GNB Batteries unit which has its debt denominated in U.S. dollars then its gearing would blow out so it is unlikely but you couldn't rule it out," said a Melbourne-based analyst. Pacific Dunlop's A$783 million (US$500 million) sale of its lead battery unit GNB to Quexco Inc is still awaiting approval from the U.S. regulator the Federal Trade Commission. Earlier this week LIG confirmed market suspicions that it had been approached by a suitor looking for a merger. British analysts have speculated the likely interested party is a U.S. firm and possibly SafeSkin SFSK , as Pacific Dunlop's latex products unit Ansell and another likely candidate U.S. company Carter Wallace Inc CAR would have antitrust problems. SafeSkin is one of Ansell's main U.S. competitors in the disposable latex and synthetic gloves business. A Sydney-based analyst said any merger between LIG and another Pacific Dunlop competitor could have negative competitive implications for the Australian company. "I really don't think it is as likely as the newspapers seem to think it is but any other merger could pose a bit of a threat to Ansell's condom business," the analyst said. LIG's Durex brand is second in the U.S. condom market to Carter Wallace's Trojan brand. Pacific Dunlop has refused to comment on the speculation. At 12:30 p.m (0130 GMT), Pacific Dunlop shares were nine cents higher at A$2.75. ((Melbourne bureau 61-3 9286-1435, fax 61-3 9621-2994, melbourne.newsroom@reuters.com)) REUTERS