Estée Lauder Seeks €5 Billion Financing From J.P. Morgan for Possible Puig Takeover

Overview

• Estée Lauder has hired J.P. Morgan to arrange about €5 billion in funding to back a potential bid for Spain’s Puig, according to Insider Monkey.
• Both companies previously said they were exploring a combination that would unite brands such as Tom Ford, Clinique, Carolina Herrera, Rabanne, and Jean Paul Gaultier in one group.
• JPMorgan’s research team cut Estée Lauder’s price target to $98, kept an Overweight rating, and said a rising number of potential deals is reducing visibility for investors.
• Barclays lowered its target to $72 with an Equal Weight rating, and Bank of America trimmed its target to $120 with a Buy, noting that forthcoming results could reveal more on the talks.
• Analysts say the proposed tie-up could create the largest premium beauty player, while Estée Lauder remains a global seller of skin care, makeup, fragrance, and hair care in roughly 150 countries.