** Citi Research downgrades rating to "neutral" from "buy"
and lifts PT to A$1.40 from A$1.30 on Australia's hygiene and
personal products maker Asaleo Care Ltd  AHY.AX 
    ** Asaleo on Tuesday said it will acquire TOM Organic, a
feminine hygiene brand for A$12.75 mln ($9.59 mln)  urn:newsml:reuters.com:*:nASN000NVW
    ** Citi estimates the TOM Organic acquisition deal will add
5.5% to Asaleo's EPS by the second year
    ** Asaleo On Dec. 10 got indicative proposal from Sweden's
Essity  ESSITYa.ST  , a 36% shareholder of AHY, to acquire
remaining shares in AHY for A$1,26 each and Asaleo' board is
still assessing the proposal  urn:newsml:reuters.com:*:nFWN2IQ06O
    ** Citi now sees that the acquisition of TOM's is only one
possible bolt-on for Asaleo and may embolden board to rebuff
Essity's initial offer
    ** Brokerage upgrades AHY's FY21 sales and core net profit
estimates by 2.1% and 4.8% to A$456.7 mln and A$41.6 mln
respectively
    ** Two out of three analysts who cover the stock rate it
"sell" or lower and one rate it "hold"; median PT is A$1.25 –
Refinitiv data
($1 = 1.3289 Australian dollars)

 (Reporting by Aditya Munjuluru in Bengaluru)
 ((aditya.srivastsav@thomsonreuters.com))