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P&G goes on the offensive

TIP OF THE YEAR UPDATE: Massive cost cutting looks set to put a rocket under earnings at Tip of the Year Procter & Gamble
February 27, 2012

Shares in Unilever and Reckitt Benckiser took a tumble last week, after rival Procter & Gamble announced a restructuring that could allow it to significantly boost operating margins and unleash more pricing firepower on its European rivals.

IC TIP: Buy at $66.65

P&G said it was cutting 5,700 jobs as part of a plan to save $10bn (£6.32bn) in costs over the next four years, a move which analysts said would also help it catch up to rivals in emerging markets.