Durex duo set for bid pay-off

DUREX condoms and Scholl footcare group SSL International has revealed it's in bid talks in which its management duo could share a pay-off of more than £1m.

Reckitt Benckiser is widely thought to be the bidder for the group, which was already in the process of selling its surgical products division to focus on its core consumer brands.

SSL's shares have rallied from lows of 166p in March to today's 335p, up 25p, in the hope that venture capitalists or trade buyers would pitch in with between £200m and £250m for the medical arm, which includes surgical gloves maker Regent Biogel.

A sale of the whole business, which could come in at around £550m, would trigger controversial 18-month payoffs for chief executive Brian Buchan and finance director Garry Watts, who were brought in to rescue the group two years ago.

At the bare minimum, Buchan would get £658,000 while Watts would receive £436,500. Buchan said: 'With brands as strong as these people are bound to be interested. But it remains business as usual with SSL. We continue with the sale of our medical business and the refocusing onto our consumer brands led by Durex and Scholl.'

Reckitt declined to comment. Chief executive Bart Becht has said for some time that he is keen on making in-fill acquisitions.