P&G Expects To Lose Money

P&G expects to lose money for two years after deal

Procter and Gamble says its proposed acquisition with Gillette will cut into profits for two years after the deal closes, but add to earnings in the third year.

P&G made the announcement in a regulatory filing this week. The filing comes as Massachusetts Secretary of State William Galvin investigates whether the 57 billion dollars that P&G is paying for Gillette is too low. The U.S. Federal Trade Commission and European regulators also are reviewing antitrust issues with the proposed deal.

In a separate filing this week, Gillette Chief Executive James Kilts has been awarded 800-thousand options on company shares.