Gsk Share Discussion Threads

[watfordhornet] 17/1/2022 08:10

Unilever shareholders do not like it. - 6%

[ch1ck] 17/1/2022 08:07

Should break 1800 today 2000 is not unreasonable over the next few weeks

[notbitcoin] 17/1/2022 08:06

Looks 1720p to start

[spyder] 17/1/2022 07:38

This from Unilever this morning.
“ Consumer Health is a highly complementary category for Unilever, with good potential for synergies and a number of routes to build scale.
GSK Consumer Healthcare would be a strong strategic fit. 45% of GSK Consumer Healthcare is in Oral Care and VMS - categories in which Unilever already has presence and substantial capabilities. OTC would be an attractive adjacent category, with the ability to combine Unilever's consumer and branding expertise with GSK Consumer Health's technical OTC capabilities. The acquisition would create scale and a growth platform for the combined portfolio in the US, China, and India, with further opportunities in other emerging markets.
We believe that this would be an attractive and synergistic combination for the shareholders of Unilever, which would also deliver value and certainty for the shareholders of GSK and Pfizer.”

[purplepelmets] 17/1/2022 00:50

I do hope this spinning off the consumer products division is not eating away into our Dame Emma's doily knitting time or disturbing her afternoon high teas with the ladies.

[philanderer] 17/1/2022 00:44

GSK banks on stronger offer for its consumer healthcare business


Analysis: drugmaker appears to be holding out for what would be one of largest ever deals in London after rejecting Unilever bids

[philanderer] 17/1/2022 00:43

Analysts say GSK is right to rebuff £50bn offer for consumer healthcare venture

Unilever’s offer represents only a modest premium to its current value, according to some leading analysts

[philanderer] 17/1/2022 00:41

GSK and Pfizer hold out for £60bn bid for consumer health unit

Investors push for higher price or spin-off after rejecting Unilever’s £50bn offer

[patientcapital] 16/1/2022 23:27

Needs to be £60bn or more to be considered.

[berny3] 16/1/2022 21:52

graham2405 - my thoughts are the rerating that being a pure pharm will do to p/e

Unilever is on 22 p/e GSk is on 17.5 p/e AZN is 47 p/e

Once you take out the £34bln in cash and earnings then re rate p/e we could be looking at a substantially bigger share price.

using your 1/3rd 2/3rds example if £34bln is 1/3rd than alone as a whole we are looking at £102bln or 20% increase.

Add to that the p/e of the 2/3rd pharm will be lifted with this deal and you are looking at a healthy premium to current price in my opinion. For ULVR they are on a p/e of 22 buying this at a p/e of 17 in basic financial text books boot straps the earnings value by increasing the p/e up to 22 from 17. Deal in my opinion looks sweet both sides. Looks like ULVR could go higher. note Bloomberg reporting ULVR are in ongoing discussions with banks on financing.

[spyder] 16/1/2022 19:49

—-> ami10
I appreciate that your £20 forecast is probably(?!) tongue-in-cheek, but in my experience the share price reaction to a news story like this is never as good as you might expect.
Hopefully the shares will at least close higher tomorrow!
Also note that we won’t have the benefit of the US response to this development tomorrow as the markets are closed for Martin Luther King day.

[ami10] 16/1/2022 18:49

£20 tomorrow

[maxplus2] 16/1/2022 18:46

Does the debt level comes into the equation for valuation?

[pdosullivan] 16/1/2022 16:20

A sale of the consumer business to ULVR is a no brainer for GSK, in my view. The Group will be left debt free and as a pure play pharma stock it should attract a re-rating.

[beergut] 16/1/2022 15:03

The best thing to do would be to sale the business to Unilever for £50 billion, wait 18 months and then buy Unilever for £28 billion. Simples

[alphorn] 16/1/2022 13:56

The disruption of the split could be significant to the businesses.
I continue to hold all the same.

[careful] 16/1/2022 12:36

I like the Dave Lewis appointment as head of the consumer division.
He did well at Tesco after leaving Unilever.

He could create wealth over the next few years.
I hope GSK hang on and reject this offer.

[ivor hunch] 16/1/2022 12:31

The situation might throw up a bid for GSK from a totally different source. I am sure the vultures are circling GSK.

[tradermichael] 16/1/2022 12:28

It is said that debt would be loaded upon the Consumer Healthcare company.

Strong cash flow and growth will enable GlaxoSmithKline̵7;s consumer products business to cope with a higher debt load after its planned separation.

Tamara Rogers, Chief Marketing Officer for GSK Consumer Healthcare, said that the business would take the increased debt in its stride because of its cash flow prospects.

“As a consumer business we have a very good cash flow, so we’re expecting - with the growth rates that we are anticipating - to be able to manage that burden,” Rogers said.

[patientcapital] 16/1/2022 12:24

About £10bn