For some time, the global healthcare company has been working on restructuring its business, and speculation that this would involve asset-stripping has been well documented. The latest turn of events is unlikely to surprise the markets, and the anticipated value of around £1 billion will no doubt be well regarded. With Suntory Beverages having stated that it is willing to spend up to £3.25 billion on various takeovers this year, this deal looks to stand a very good chance of going through to completion.
The markets have been somewhat uninspired by the developments in GlaxoSmithKline of late, and this has resulted in the shares drifting below the 50- and 100-day moving averages over the last week’s trading. Admittedly the general sentiment of the equity markets has been somewhat muted over the last month, but even taking that into consideration the markets will be looking for the firm to follow through on its restructuring talk. Nevertheless, IG clients have been staunch in their support of the 4.6% dividend-yielding company, as they are 94% long.