Executives of consumer-products giant Procter & Gamble, the maker of Tide detergent and other household goods, should consider breaking up the company to improve its beleaguered performance, Barron’sfinancial newspaper said.
The “radical action” would give the Cincinnati-based company a chance to contend with more “agile competitors,” according to Barron’s report this weekend. Procter & Gamble has been struggling with weak performance, with its shares down 17 percent this year.
A breakup would give investors a chance to invest in companies that would be growing from a smaller base, with Barron’s projecting that P&G’s businesses could be worth $90 per share if traded separately. That compares with a recent stock price of $75.