Garnier Told To Sell Glaxo Consumer Unit
Make a commentBy Ed Silverman // June 15th, 2007 // 7:37 am
Once again, investors are clamoring for JP to do something more than buyback shares and raise the dividend. And with safety fears over Avandia pummeling the stock, they want the ceo to take action and sell the business responsible for the new Alli over-the-counter fat pill and Ribena, the soft drink that doesn’t always contain the vitamin C claimed in ads.
“Glaxo’s share price has gone nowhere for five years and investors are getting fed up,†Peter Cartwright at Evolution Securities tells The Times of London.
GSK shares have slipped 10 per cent since May and are at their lowest levels since early 2005. A fund manager for one of GSK’s largest shareholders, with a holding of more than 1 per cent, told The Times: “I would support a sale. Prices paid for these types of businesses at the moment are huge, so it is a good time to sell.†He had discussed the issue “many times†with GSK management - to no avail.