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

To: Apple12 who wrote (804)	5/3/1999 9:35:00 AM
From: Sunny Jim	Respond to of 828

<<you would have been better off betting on SFSK than scumbag lawyers!>> Sad but true A M E N

To: Apple12 who wrote (804)	5/4/1999 2:29:00 PM
From: Beltropolis Boy	Respond to of 828

UK condom maker LIG in mating game May 4, 1999 01:41 PM By Arindam Nag LONDON, May 4 (Reuters) - Britain's London International Group Plc, manufacturer of Durex condoms and surgical gloves, confirmed on Tuesday it was in merger talks with Seton Scholl, the UK healthcare group. However, any marriage could be delayed as the parties try to work out valuation terms acceptable to both sides. Seton, the footcare specialist, and LIG said they were discussing an all-share merger which, according to current share prices, could value the combined group at over $2.0 billion. Seton's shares jumped on the news on what analysts said was a good opportunity for the Oldham, north-west England, company to break into the U.S market. At 1500 GMT, Seton's shares were up 63 percent or 8.21 percent, while LIG's shares were down 2-1/2 pence at 177-1/2p after reaching a day's high of 185 pence. People familiar with the deal say both companies have been flirting with each other since last December after a profit warning saw LIG's shares at one point slump below 120 pence. However, disruptions at LIG's U.S. operations, mainly linked to its medical gloves business, put the brake on serious attempts to get together. But sources say the recent renewal of talks has hit an obstacle in the form of disagreement on the size of the stake for each partner. While LIG is keen to retain a 47 percent stake in the combined group, sources say Seton is willing to yield only 42 percent. The sources said negotiations were continuing but were unlikely to bear fruit very soon. However, analysts said the deal was unlikely to face any significant opposition from shareholders in either company. "The primary benefits would come from through cost savings in distribution and there are also no product overlaps between the two companies," said analyst Michael King of SG Securities. Meanwhile, industry sources also confirmed that LIG was in talks with at least two other companies on possible mergers. Safeskin (SFSK), the U.S. leader in latex gloves and condom maker Carter Wallace (CAR) are being mentioned as among potential suitors. A merger at even close to equal terms is likely to show as an acheivement for LIG Chief Executive Nick Hodges who faced a daunting task to rescue the company after it slumped to a 175 million pound ($282.7 million) loss in year to March 1994. The company then got out of an array of low-margin products and moved towards more high-margin items like powdered gloves. The company also rolled out its Durex brand in the U.S., triggering a comdom war with Trojan, the brand owned by Carter Wallace. The company reported first half profits in 1998 of 7.1 million pounds, down from 9.2 million in the previous year. Analysts on Tuesday said they the company was expected later this month to report annual profits between 36 and 38 million pounds for the full year later this month. ($1=.6189 Pound)