Stingy Reckitt

19 February 2003 By Rob Cox Follow @rob1cox

The AngloDutch consumer products group decided against a stock buyback to keep powder dry for doing deals. Having promised to hand back cash if it failed to make acquisitions last year which it did this policy simply looks stingy.

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Reckitt Benckiser, the AngloDutch maker of consumer products like Finish dishwashing powder and Lysol air freshener, disappointed investors who expected it to announce a stock buyback as part of its 2002 earnings release.

Chief executive Bart Becht said he will consider returning cash to shareholders, either by repurchasing stock or raising its dividend, later in the year, after it has reduced net debt to zero and extinguished opportunities for acquisitions.

The company reported fourthquarter sales of £899m and net income of £140m, surpassing analyst expectations.

Meantime, one of the group's biggest shareholders, JAB Investments, said it would raise about E1bn by reducing its holding to less than 17% from about 24%.

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