Glaxo rejects hostile takeover, looks for SBH to fire Jan Leschly:
Sir Richard Sykes, Glaxo's chairman, has let it be known
to investors that he would still like to bring about a merger
of the two companies. Sykes has indicated he would be
willing to re-open negotiations but only if SmithKline was
run by a different management team.
The Glaxo camp is hinting to investors that they should put
pressure on the non-executive directors at SmithKline, led
by Sir Peter Walters, to replace Jan Leschly, the chief
executive..........
Although analysts believe it is highly unlikely that Sykes can
get a no-premium hostile bid off the ground, they say
Leschly's behaviour over the last month has left SmithKline
uniquely vulnerable to a bid. In the past few weeks,
SmithKline has started and then ended merger negotiations
with both American Home Products and then Glaxo
Wellcome. Within the industry, there is speculation that
either Hoechst of Germany or America's Bristol-Myers
Squibb could bid for SmithKline. The City does not
believe that Leschly, who has failed after two sets of
negotiations, would have credibility if he proposed another
merger.
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