Report: Procter & Gamble Near Deal to Buy Gillette

Procter & Gamble(PG Quote) is nearing a deal to purchase Gilette(G Quote) in a stock swap valued at about $55 billion, according to The Wall Street Journal, which cites people familiar with the matter.

Under the terms of the deal, P&G is offering 0.975 P&G share for each share of Gillette outstanding. That would value Gillette shares at $53.94, based on P&G's Thursday closing price of $55.32, the Journal said. The offer represents a 17.6% premium to Gillette's closing price of $45.85.

The Journal noted that P&G stock has risen 32% during the past two years, giving the company strong currency to engineer a major acquisition.

Neither company provided comment on the matter, the Journal reported.

Ironically, hair and skincare product maker Alberto-Culver(ACV Quote) denied rumors on Thursday that it was in merger talks with P&G, according to Reuters, which cited the speculation, prompting an 8% jump in Alberto shares.

Earlier Thursday, P&G said its second-quarter earnings jumped 12%, beating analysts' per share estimates.