Traders are pushing derivatives linked to Procter & GambleCo. debt to the riskiest level relative to Colgate-Palmolive Co.and lower-rated Unilever since 2009 on concern that investor BillAckman will pressure the company to reward shareholders at lenders'expense.

The cost to protect bonds of the world's largest consumer-goodsmaker from default has increased 10.2 basis points to 0.62percentage point yesterday in New York since July 11, after Ackmanbought a $1.8 billion stake in P&G. While the stock has sincegained 5.6 percent as bullish options wagers surge, bonds of themaker of Tide, Pampers and Crest are underperforming as profitmargins narrow and sales growth decelerates to the slowest since2009.

Ackman may persuade management to reinstate its share repurchaseprogram with debt-sale proceeds, according to bond research firmGimme Credit LLC, after its stock fell almost 10 percent from the2012 high. Cincinnati-based P&G's swaps were less expensivethan those of Colgate and Unilever a year ago.

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