'Boston's piñata' slams media, politicians for P&G deal attacks

After describing himself as ''Boston's piñata," Gillette chief executive James M. Kilts yesterday doled out a few blows of his own.

Kilts lashed out at the Boston media and local politicians for what he called unfair attacks against the deal to sell the shaving giant to Procter & Gamble Co. At a breakfast meeting of the Greater Boston Chamber of Commerce at the Boston Harbor Hotel, he blasted the ''profound ignorance" and ''inflammatory rhetoric" that he claims have distorted the true strength of the $53 billion deal.

''This merger didn't deserve the strident attacks," said Kilts, who said he was speaking out to ''set the record straight" now that he doesn't face regulatory restrictions because shareholders from both companies approved the deal in July.

Kilts also lambasted the media for portraying Gillette's management as ''a gaggle of greedy ghouls more interested in our personal wealth than creating value for all Gillette stakeholders."

Kilts stands to receive a compensation package valued at about $165 million if the acquisition moves forward, as expected, to create one of the world's biggest consumer products companies. Kilts defended his payout, saying Gillette executives have turned around the once struggling company and increased the stock price by more than 76 percent over the past four and a half years.

His comments came a day after The Boston Globe published an op-ed piece in which Kilts complained that Gillette for months has faced ''unsubstantiated, inaccurate and irresponsible criticism."

During his talk yesterday, Kilts criticized a photo illustration that appeared in The Boston Herald in which the chief executive was depicted holding money bags. He displayed the illustration during his presentation -- which drew some laughter from the audience of about 200.

''I really consider my recent experience as Boston's pinata as part of my job responsibilities," Kilts said.

Kilts also targeted two columns that ran on the Globe op-ed page that he said unnecessarily fueled fears and hostility toward big businesses. (Kilts is a member of the board of directors of The New York Times Co., which owns the Globe).

Renee Loth, the Globe's editor of the editorial page, said the section is ''intended to be an exchange of views on issues of concern to our community."

Cosmo Macero Jr., the Herald's business editor, said his paper's news coverage was fair and aggressive and its commentary tough, but reasonable.

''Sometimes people don't like the look of reality and truth when it's packaged in a very blunt way," Macero said.

During his nearly hourlong talk, Kilts also took aim at politicians -- though he later declined to identify them -- who he says have tried to make a name for themselves by beating up on business.

He also urged the chamber to withhold support from politicians who make attacks on business a central part of their campaign.

Among political officials, the most vocal and persistent critic of Kilts and the Gillette deal was Massachusetts Secretary of State William F. Galvin, who launched an investigation months ago into whether Gillette shareholders were getting a fair deal.

Kilts's ''view of what is anti-business is 'as long as business can do whatever it wants without regard to the future of its employees and the local economy, it's OK,' " Galvin said. ''I disagree."

Galvin yesterday defended the state's investigation, saying there are serious questions about the fairness opinions issued by investment banks that advised Gillette on the deal. The transaction, which was approved in July by shareholders from both companies, will eliminate about 6,000 positions from the combined workforce of 140,000.

''Unfortunately, there is no other possibility," said Kilts, who described the job cuts as the most difficult part of the merger. ''Fortunately, employees affected by the merger will be offered very competitive termination settlements as well as comprehensive outplacement services to help in their new job searches."

The deal with P&G still requires approval from regulators and Kilts said yesterday he expects the transaction to close this fall. Several top executives have agreed to stay on, including Kilts, who will lead Gillette's shaving business that will continue to operate out of Boston.

Kilts said Massachusetts needs to change its attitude if it wants to attract new business, especially now that P&G officials are deciding whether the Commonwealth is a place where they want to expand and invest.

''I hope that we in the business community, the government, and the press can move beyond the inflammatory rhetoric and focus on the future," Kilts said. ''It's time to put our best foot forward."

Jenn Abelson can be reached at abelson@globe.com.