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. ...