Gsk Share Discussion Threads

[geckotheglorious] 18/1/2022 19:14

Bank of America analysts led by Graham Parry noted that the latest bid valued at £50B is unlikely to offer “material valuation upside” for GlaxoSmithKline (NYSE:GSK).
A potential sale could lead to significant capital gains tax liabilities and could be more unfriendly for shareholders than a spinoff for which the investors have expressed their preference in the past, the analysts added.
Unilever (NYSE:UL) may have to add more stock to sweeten the deal, the team predicts. Even a higher bid with more Unilever (UL) shares is unlikely to be more favorable than owning GSK Consumer stock, the analysts added, noting Unilever’s (UL) lack of expertise in consumer health. BofA has a Neutral rating and a $41.55 per share target on GlaxoSmithKline (GSK).
A potential deal for the GSK’s consumer unit will attract scrutiny from multiple regulatory agencies, Credit Suisse warned in a note following a meeting with the GlaxoSmithKline (GSK) CFO Lain Mackay yesterday. The firm has an Underperform rating on the stock and a 1400.00p target.
The Unilever’s (UL) bids for the unit “substantially undervalue the group,” the analysts led by Dominic Lunn remarked, adding that CFO Mackay chose not to discuss the terms for an equity component for a deal until the company receives a reasonable offer.
At the recently concluded JPMorgan Annual Healthcare Conference, GlaxoSmithKline̵7;s (GSK) plans for the consumer unit took center stage during the company’s presentation.

[patientcapital] 18/1/2022 18:14

The problem is that there was no meaningful takeover premium offered. £60bn +, all cash or demerger. I favour the latter.

[ianood] 18/1/2022 17:56

Personally, as a long term holder either £60bln or a float with Dave Lewis behind it would suit me nicely!

[careful] 18/1/2022 17:43

Why reject ulvr bargain cut priced shares?

There is something we do not understand here.
Are Pfizer blocking this deal for their own reasons?

[rogerrail] 18/1/2022 15:44

I know, but GSK don't need or want ULVR paper, which is why I think offering all cash would clinch it. The paper element should be funded by ULVR shareholders.

[rogerrail] 18/1/2022 15:41

What benefit is a float to pfizer, they would still be retaining their 32% stake and tying up capital?

[tradermichael] 18/1/2022 15:39

But they are not offering an all cash deal. Its £41.7 billion in cash and £8.3 billion in Unilever shares.

[rogerrail] 18/1/2022 15:32

Well considering the markets reaction which already sees a deal around the £50b level as favourable to GSK, ULVR would be pretty stupid to offer that much.

[patientcapital] 18/1/2022 15:27

They (GSK & Pfizer) are thought to be holding out for £60bn.

[tradermichael] 18/1/2022 15:27

Thing is, Ms Walmsley doesn't own it all, just 68%. The balance belongs to Pfizer who are as signed up to a float as GSK is.

[rogerrail] 18/1/2022 15:24

I am sure a £50 billion all cash offer would clinch it, which ULVR should fund via a combination of a rights issue (imperative imo), brand sales and debt. Ms Walmsley would find it difficult to persuade shareholders that a float is a better outcome.

[rogerrail] 18/1/2022 15:17

Well aquisition strategy seems to be right for AZN, re Alexion, Amlyn, MedImmune , As well as various drug developments.

[zho] 18/1/2022 14:58

Unilever not deterred by rejection of $68B bid for GSK's consumer unit

Unilever said it will continue to pursue a takeover of GlaxoSmithKline's consumer unit, which includes Advil painkillers and Sensodyne toothpaste, after being rejected on three bids — the last of which was worth around $68 billion.

[semper vigilans] 18/1/2022 14:14

The ‘advisors̵7; will point them in the direction that achieve the highest fees for them.

[spoole5] 18/1/2022 14:11

This is gonna end the week where it started

[rogerrail] 18/1/2022 12:48

I would go further and say that the share price has responded well on realisation of the worth of the consumer business and has retraced from its spike up on some concern that GSK will revert to the original flotation plan.Also now is a good time to have cash seeing as the valuations of pharma and biotech shares has come down somewhat from their peak, perhaps a bid for Moderna currently capitalised at £60billion?

[rogerrail] 18/1/2022 12:40

Is Ms Walmsley acting in the best interest of shareholders? Not sure why she would not be keener to offload the consumer business rather than a more complex time consuming floatation process where shareholders end up with 80% of 68% of a business paying just 11p per share in dividends and still having to offload the remaining 20% through gradual selling in a timely manner? That would suppress the share price of the new company for a number of years. Haven't worked out the figures but £50 billion sounds like a good offer to me albeit it is part paid in ulvr shares, but in theory GSK would then have the cash to focus on their high growth business through strategic acquisitions which seems the best deal for shareholders, or does Ms Walmsley not feel up to the task?

[medieval blacksmith] 18/1/2022 12:40

Right-wing morons label everything as ‘woke’. It only shows how ignorant they truly are.

[billionairepaddy] 18/1/2022 12:08

still it was nt a very nice comment

[shstt1] 18/1/2022 12:00

He’s Mr Woke

[patientcapital] 18/1/2022 10:22

One suspects it was made in a lighthearted way possibly downwind of a few!

[purplepelmets] 18/1/2022 00:27

Sounds like all the eggs are in Dame Emma's basket, which is ironic as given her age it would be a very barren basket. Still, kudos to her for not biting woke Jopey's arm off. Some game in the old bird yet.

[philanderer] 18/1/2022 00:18

“GlaxoSmithKline’s share price has jumped on the news as Unilever’s actions effectively fire the starting gun for a bid war for the consumer goods unit. Nestle could be interested, so too private equity.”

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