updated 4/21/2005 2:55:16 PM ET 2005-04-21T18:55:16

Gillette Co. went to court on Thursday to quash a subpoena by Massachusetts Secretary of State William Galvin, who says Procter & Gamble Co. may be shortchanging Gillette shareholders by paying too little for the company best known for its shaving products.

Gillette's countersuit, filed in Suffolk Superior Court, argues that Galvin lacks jurisdiction over the pending $57 billion deal.

"This transaction is subject to regulation by the SEC under federal law and by the regulatory authorities," Gillette vice president of communications Eric A. Kraus said in a statement.

While Gillette's headquarters are in Boston, Kraus said, the company is actually incorporated in Delaware, further muddying Galvin's involvement.

Galvin said he has no plans to back down. The Democrat sued Gillette last week, seeking access to documents used by independent examiners to determine Gillette's worth.

"The fact that Gillette is stonewalling and trying to hide this material ... raises more questions about this transaction," he said Thursday. "This is all about the need to make sure that this very important transaction is in the best interest of the people of Massachusetts and the shareholders."

Gillette and P&G have each maintained that the price in the deal fairly reflects Gillette's value, as well as the savings expected as the two companies combine operations, cut about 6,000 jobs and increase their clout in the marketplace.

Galvin, whose office enforces state securities laws, began reviewing the acquisition days after it was announced on Jan. 28. He hired a University of Virginia professor to review documents obtained from the companies.

P&G and Gillette have publicly forecast savings of $14 billion to $16 billion from the deal. But Galvin's expert, citing internal company forecasts, concluded savings could range from $22 billion to $28 billion.

Because of the discrepancy, Galvin has said the premium P&G is offering on the value of Gillette shares is too small.

The 6,000 job cuts represent about 4 percent of the companies' combined work force of 140,000. Many of the cuts are expected to come at Gillette's headquarters in the 52-story Prudential Tower in Boston's Back Bay section.

The deal, P&G's biggest acquisition in its 167-year history, requires shareholder and regulatory approval.

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