Condom firm arouses bid interest

SSL is in a strategic muddle

SSL International, the firm behind Durex condoms and Marigold rubber gloves, is being pursued by a potential bidder.

The firm's shares jumped 8% to 335p on Monday, after it admitted it was in talks over a takeover worth £675m ($1.1bn).

According to market rumour, the would-be buyer is Reckitt Benckiser, the world's biggest household cleaning products firm.

Although Reckitt refused to confirm a bid, the Anglo-Dutch firm has long been seen as a suitor for SSL, ahead of other potential buyers such as Kimberly-Clark and private equity investors.

Out of the muddle

Analysts have seen SSL as a takeover target for years.

The company is seen as in something of a strategic muddle, with interests sprawling across specialist and consumer healthcare sectors.

It was formed by a three-way merger between Seton Healthcare, footwear specialists Scholl and London International Group.

The firm announced in March that it planned to sell its medical division, a possible sign that it is tightening its focus on consumer markets.

Although analysts have welcomed this, they have also warned that too many sell-offs will leave the firm small and vulnerable to stronger competitors.