John Frieda: Brands In Demand; Loss of bidding war for Clairol led Kao Corp. to add a major moneymaker to its stable.(News)

Advertising Age, May, 2003 by Neff, Jack

Byline: JACK NEFF

Sometimes, not getting what you want may be a good thing. Exhibit One: Kao Corp.'s failure to acquire Clairol, which led the jilted suitor into the arms of the fast-growing John Frieda brand. Kao was on the brink of landing Clairol in May 2001, with its $4.5 billion bid for the former Bristol-Myers Squibb Co. unit topping Procter & Gamble Co. Then, as the auction was about to close, P&G increased its own bid to nearly $5 billion.

It was too late, given the deliberative style of Kao's Japanese management, for Kao to counter by that much, said executives familiar with the matter.

Some analysts believe one reason P&G wanted Clairol so much was to keep Kao and its legendary research and development prowess from getting a...

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