Gsk Share Discussion Threads

[nigelpm] 22/3/2018 13:47

Certainly possible Pfizer decide to walk away from the Sale.

[essentialinvestor] 22/3/2018 13:31

Agree, that makes more sense re their it's in the PFE business.

[romeike] 22/3/2018 13:21

The question right now though is do you risk some cash on buying in on the cheap and potentially getting a nice 5% + return like RB when EW announces they are walking away - or will EW appal us all by signing up to a rip-off deal for the "kudos" of being a leader in CH and sticking a finger to rival RB?

[romeike] 22/3/2018 13:10

@nigelpm Yes I think it is good too as it sets up for a small possibly the best scenario where GSK gets a bargain. Just can't see it as it seems to be a slightly reluctant sale by Pfizer.

[essentialinvestor] 22/3/2018 12:56

Rome, you may be right on that. GSK have said they would be very interested
in the option, so the decision is with NVS. They must surely have some indication
from NVS on their intentions?.

[minerve] 22/3/2018 12:25

Novartis PUT coming soon! LOL

[nigelpm] 22/3/2018 11:41

Good news for GSK I'd say - only bidder left in the game.

[romeike] 22/3/2018 11:39

No wonder RB wanted to cherry pick though, that's what I'd have tried too. Anadin/Advil worth picking up, as is Nexium and Thermacare, the rest of it I am not very keen on, especially the vitamins.

[romeike] 22/3/2018 11:35

EI - isn't the PUT fixed price based on the current value of the JV?

[romeike] 22/3/2018 11:34

That thing about new bids is a bit spurious, the last deadline was there for declarations of interest so that parties could get access to the books. Only RB and GSK declared an interest, so presumably there could be new bids but they would be blind bids, a bit like buying a house at auction without bothering to check it was actually still standing.

[essentialinvestor] 22/3/2018 11:30

Why not just make a generous offer to buy NVS out of the JV,
on a business they already own and can value perfectly?.

Those existing consumer brands look stronger to me.

[romeike] 22/3/2018 11:27

I guess the key thing is how long it would take to pay itself off and start earning money for the company. GSK can borrow a lot at ultra low rates to makes this start returning cash within five years so long as it sticks to a low buying price. I just can't see it happening though. Pfizer will want max value suggested by the rapid escalation from $10bn to $20bn as the figures that were being bandied about.

[abdullla] 22/3/2018 10:47

High noon .

[dr biotech] 22/3/2018 10:40

Thing is none of us know what the consumer unit is worth. I've read reports of $10-20bn. Thats quite big spread - $10,000,000,000. One has to assume that EW knows what she is doing and can presumably drive the bargain that she wants. I'm not against it, but with interest rates on the rise it needs to be funded carefully, even if its earnings enhancing. I guess we will know soon enough.

[romeike] 22/3/2018 10:15

The rationale is that scale brings big benefits for consumer, so if you're going to have consumer it is better at scale. If GSK successfully take on the Pfizer consumer brand, once integrated into Consumer, I hope they will spin off the whole division into a separate listed Company.

Today is the deadline for bids. Please someone correct me if I am wrong. I think GSK will make an offer, but I suspect it will be a relatively modest offer, $12-14bn. We'll likely never find out if Pfizer says no.

I doubt Novartis will exercise its PUT, for which the deadline is the end of this month if I remember right.

[philanderer] 22/3/2018 10:05

RB. +6% on that Pfizer news this morning.

[tradermichael] 22/3/2018 09:57

Its odd that the two companies are following different strategies - one concentrating on core prescription drugs and divesting consumer healthcare. The other concentrating on core prescription drugs, yet acquiring consumer healthcare ....

[tim 3] 22/3/2018 09:43

At the end of the day you have to trust management know what hey are doing (or sell your shares)

She knows she will be heavily judged on this buy if it goes ahead so she must be pretty confident it is the right move.

[philanderer] 22/3/2018 09:37

Upgrade by Morgan Stanley to equal-weight..tp 1400p up from 1300p

[nico9] 22/3/2018 08:29

Reckitt Benckiser Group PLC (RB.LN) said Thursday that it has ended discussions about its potential acquisition of Pfizer Inc.'s (PFE) consumer health-care business.

The consumer-goods company said it had only been looking to buy part of the business because the whole unit did not meet its acquisition criteria, but this had turned out to be impossible.

"Our priority remains organic growth, including the completion of the integration of Mead Johnson Nutrition and creating further value from reorganizing into two new business units--Health and Hygiene Home," Reckitt Benckiser Chief Executive Rakesh Kapoor said.

Pfizer said last October that it was considering a sale or spinoff of its over-the-counter unit, which makes Advil ibuprofen and Centrum multivitamin pills. The unit is expected to fetch more than $10 billion, according to analysts.

This leaves GlaxoSmithKline PLC (GSK.LN) in the running to buy the unit. The pharmaceutical major said in October said it was considering a bid for the unit should the U.S. company put it up for sale.


Write to Carlo Martuscelli at [e-mail]


(END) Dow Jones Newswires

March 22, 2018 03:37 ET (07:37 GMT)

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[abdullla] 22/3/2018 08:19

Wao!RB up massive 7.5% GSK down,guess who is going to be buying the Pfizer unit !

[tradermichael] 22/3/2018 08:16

As former head of GSK's Consumer business, Emma will know exactly how to bolt the Pfizer business on to GSK ....

[abdullla] 22/3/2018 07:40

If the price is right and the Pfizer unit will blend into GSK by helping its balance sheet then share price will rise otherwise back to 1200p,we will soon find out at the open.

[montyhedge] 22/3/2018 04:07

If true, how can GSK afford it?