Procter & Gamble

(PG) - Get Report

was being pulled in different directions Tuesday morning after upping its earnings guidance and announcing the biggest acquisition in its history.

For now, the shares have resolved half a percent higher at $86 on the Instinet premarket session.

The Cincinnati consumer products bellwether said after the bell Monday that it expects what it calls "core earnings" to rise 13% or 14% in the third quarter ending this month, up from a previous growth prediction of 11% to 13%. P&G cited a better-than-expected contribution from foreign exchange: a 3% to 4% contribution instead of 1% to 2%.

In a subsequent announcement Tuesday morning, P&G said it agreed to acquire German shampoo maker Wella for a little more than $7 billion. The agreement is with Wella's family owners; P&G will now launch a tender offer to remaining shareholders.

Wella is the world's second-largest supplier of hair-care products to salon and the acquisition follows P&G's $5 billion purchase of Clairol from