1. Homepage
  2. Equities
  3. United Kingdom
  4. London Stock Exchange
  5. GlaxoSmithKline plc
  6. News
  7. Summary
    GSK   GB0009252882

GLAXOSMITHKLINE PLC

(GSK)
  Report
Delayed Quote. Delayed London Stock Exchange - 05/13 11:35:18 am
1755.4 GBX   +2.46%
05/13GLAXOSMITHKLINE : JP Morgan sticks Neutral
MD
05/11New class of cancer drugs down, not out, after Roche trial setback - analysts
RE
05/11Blow to Roche's cancer immunotherapy prospects as 2nd trial fails
RE
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Activist investor provides twist in Unilever soap opera

01/24/2022 | 06:57am EDT
Illustration of Unilever logo

(Reuters) - Shares in Unilever rose 6% on Monday on reports that activist investor Nelson Peltz has built a stake in the consumer goods giant whose strategy is under scrutiny after a short-lived pursuit of GSK's consumer healthcare arm.

Peltz's hedge fund, Trian Partners, has built an unspecified stake in Unilever, a person familiar with the matter told Reuters on Sunday. The New York-based fund is known for proposing operational changes at its portfolio companies which have previously included Procter & Gamble.

Unilever declined to comment on the investment. Shares of the owner of brands such as Dove soap, Hellmann's mayonnaise and Sunsilk shampoo were up 6.0% at 3,894 pence by 1146 GMT and the biggest gainer on London's blue-chip FTSE 100 index.

This isn't the first time Peltz has shown interest in a consumer goods company.

In 2018, Trian called for a slew of changes at Unilever's bigger rival P&G. Peltz was then added to the board of the company, following a months-long proxy fight.

P&G subsequently met some of the activist hedge fund's demands and announced new financial targets. Peltz stepped down from the company's board last year.

'NOT MUCH OF A SURPRISE'

Unilever's unexpected and ultimately unsuccessful 50 billion pound ($67.50 billion) pursuit of GlaxoSmithKline's consumer health business, which had it gone through would have been one of the largest ever deals on the London market, raised questions about Unilever's plans under Chief Executive Officer Alan Jope.

Peltz's stake in Unilever "will not be that much of a surprise to industry specialists", Barclays analysts said in a note, adding that his possible involvement with Unilever had been discussed long before the GSK skirmish.

"From Unilever's perspective, the status quo is not an option. It would seem that the stars are aligning with both Unilever management and an activist pushing for more urgency," they added.

By Friday's close, Unilever had lost 6% in value since the GSK overtures were disclosed on Jan. 15 with the chase effectively abandoned within a few days.

The company's shares have also dropped 31% from highs seen in late 2019, compared with a 3% rise in the FTSE 100 during the same period.

Terry Smith, whose Fundsmith vehicle is Unilever's 13th biggest investor, took aim at Unilever last week, labelling the GSK bid "a near death experience," and reiterating calls to focus on the operating performance of the existing business.

Unilever is set to announce an initiative this month to strengthen its business, and said last week it was committed to "strict financial discipline" for any acquisitions.

($1 = 0.7408 pounds)

(Reporting by Pushkala Aripaka in Bengaluru, Richa Naidu in London and Svea Herbst-Bayliss in Boston; Editing by Shounak Dasgupta, Keith Weir and Kirsten Donovan)

By Pushkala Aripaka and Richa Naidu


ę Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
BARCLAYS PLC 2.61% 150.16 Delayed Quote.-19.59%
FTSE 100 2.55% 7418.15 Delayed Quote.0.46%
GLAXOSMITHKLINE PLC 2.46% 1755.4 Delayed Quote.9.26%
THE WENDY'S COMPANY 0.79% 17.33 Delayed Quote.-27.34%
UNILEVER PLC 1.42% 3747 Delayed Quote.-5.03%
All news about GLAXOSMITHKLINE PLC
05/13GLAXOSMITHKLINE : JP Morgan sticks Neutral
MD
05/11New class of cancer drugs down, not out, after Roche trial setback - analysts
RE
05/11Blow to Roche's cancer immunotherapy prospects as 2nd trial fails
RE
05/10WALL STREET STOCK EXCHANGE : A little respite for Wall Street
05/10GLAXOSMITHKLINE : Berenberg remains its Buy rating
MD
05/10Berenberg Maintains GlaxoSmithKline's Buy Rating, Lifts PT
MT
05/10ANALYST RECOMMENDATIONS : Edison International, Ford, General Motors, GSK, Upstart...
05/10Financials and healthcare shares lift FTSE 100
RE
05/09COVID vaccine makers shift focus to boosters
RE
05/04GlaxoSmithKline Says 38% Of Votes Cast At AGM Against Resolution To Approve The Remuner..
RE
More news
Analyst Recommendations on GLAXOSMITHKLINE PLC
More recommendations
Financials
Sales 2022 36 444 M 44 590 M 44 590 M
Net income 2022 5 286 M 6 468 M 6 468 M
Net Debt 2022 18 404 M 22 518 M 22 518 M
P/E ratio 2022 16,5x
Yield 2022 3,00%
Capitalization 88 844 M 109 B 109 B
EV / Sales 2022 2,94x
EV / Sales 2023 2,77x
Nbr of Employees 90 096
Free-Float 93,6%
Chart GLAXOSMITHKLINE PLC
Duration : Period :
GlaxoSmithKline plc Technical Analysis Chart | GSK | GB0009252882 | MarketScreener
Technical analysis trends GLAXOSMITHKLINE PLC
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 22
Last Close Price 1 755,40 GBX
Average target price 1 851,01 GBX
Spread / Average Target 5,45%
EPS Revisions
Managers and Directors
Emma N. Walmsley Chief Executive Officer & Executive Director
Iain James Mackay Chief Financial Officer & Executive Director
Jonathan Richard Symonds Non-Executive Chairman
Hal V. Barron Executive Director & Chief Scientific Officer
Jon Ellis VP & Head-Technology Business Development
Sector and Competitors
1st jan.Capi. (M$)
GLAXOSMITHKLINE PLC9.26%108 703
JOHNSON & JOHNSON3.38%465 363
PFIZER, INC.-15.46%280 096
ABBVIE INC.13.37%271 251
ELI LILLY AND COMPANY5.58%262 514
ROCHE HOLDING AG-15.85%258 421