
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, March 1, 1991                   TAG: 9103010143
SECTION: BUSINESS                    PAGE: A-11   EDITION: STATE 
SOURCE: The New York Times
DATELINE: NEW YORK                                LENGTH: Medium

REVLON TALKING SALE WITH UNILEVER, 2 OTHERS

Revlon Inc., the cosmetics giant headed by the billionaire Ronald O. Perelman, is in talks about a possible sale of the company with Procter & Gamble; L'Oreal, the French cosmetics giant, and Unilever, the British-Dutch parent of Elizabeth Arden, the Roanoke cosmetics maker.

One cosmetics industry executive familiar with the talks cautioned that they were "very preliminary" and could last two to four weeks more.

"The company is testing the waters," said the executive, who insisted on anonymity, "but it is not talking with a large number of people. This is not an auction."

But he said that so far Procter & Gamble and L'Oreal were "the front-runners." Discussions with Unilever, whose American subsidiary is Lever Brothers, appeared to be "half hearted," he said.

Revlon had pretax operating profit last year of at least $220 million on revenue of $2.7 billion. The overall price tag, the executive said, presumably would range from 1.2 to 1.7 times annual sales, or $3.2 billion to $4.6 billion.

Revlon is not exploring a sale because of financial pressure from its high-yield "junk bonds," he said. But analysts say Revlon has $816 million in debt due in 1992, mostly to banks, and $475 million in bond debt due in 1995.

Analysts say Revlon cannot pay those debts through cash flow and will have to resort to asset sales.

The executive said Revlon was concerned about increasing competition from large global companies such as L'Oreal and the harsher competitive environment in retailing would "make Revlon's job that much tougher."

In brisk trading Thursday, Revlon's 11 3/4 percent senior subordinated notes due in 1995 closed at $88 per $100 in value, up $4.125 for the day, on heavy volume. The company's 10 7/8 percent debentures due in 2010 closed at $81.25 per $100 in value, up $11.75, on heavy volume.

Revlon's talks with Procter & Gamble were first reported on Thursday in The New York Post.

The discussions concern all of Revlon, except for National Health Laboratories, an indirectly owned health-care subsidiary. But "some have said that pieces of the business could be worth more than the whole," the executive said.

by CNB