Reckitt denies plans for Kraft-style acquisition

Consumer products maker Reckitt Benckiser - the name behind Finish dishwasher detergent, Vanish stain remover and Strepsils lozenges - has played down speculation that a sizeable acquisition is on the horizon, despite unveiling a cash build-up as it reported its fourth-quarter and full-year results this week.

The firm's sales went up 18 per cent to £7.75 billion in 2009, while underlying sales growth rose ten per cent from October to December alone. Annual pre-tax profits increased 28 per cent to £1.89 billion, having risen 17 per cent to £607 million in 2009's fourth quarter.

Reckitt's cash generation last year meant it went from having net debt of £1.1 billion to net cash of £220 million.

However, Bart Becht, chief executive of the Anglo-Dutch group, says another Kraft-style takeover is unlikely, suggesting there's a greater chance Reckitt's acquisition criteria will lead to bolt-on deals rather a mega-merger because the household goods industry is already heavily consolidated.

Meanwhile, fellow cash-rich FTSE 100 company Autonomy, the Cambridge-based search technology specialist, has indicated it will use its reserves to buy US businesses and expand its technology into new markets in the process.

The firm revealed this week it raised £500 million through a bond issue that was priced and sold in just two hours, adding to its existing cash reserves of £155 million.

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