Here's the latest from Dow Jones:
Dow Jones Newswires -- March 2, 1998
Glaxo, SmithKline Confirm Shareholder Meetings This
Week
LONDON (Dow Jones)--Glaxo Wellcome PLC (GLX) and SmithKline
Beecham PLC (SBH) confirmed Monday plans to meet with major
shareholders this week, fueling speculation of an impending takeover battle
for Smithkline by Glaxo.
While both companies sought to play down the meetings as routine, fund
managers said discussions will likely center around the possibility of a scrip
bid for SmithKline.
Lynne Smith, a spokeswoman for SmithKline Beecham, said company
executives are due to meet with shareholders later this week and wouldn't
comment further. However, she slammed newspaper reports that
SmithKline was planning a GBP1.00 billion bond to fund research and
development as 'total speculation.'
'The figure is speculative and the timing is speculative,' she said, adding that
such rumors probably stem from comments made by SmithKline Chief
Executive Jan Leschly at the company's full-year profit results in February.
In a media briefing after the result, Leschly said SmithKline had previously
considered a range of methods to fund rising R&D costs.
Martin Sutton, a spokesman for Glaxo, said the company has several
meetings scheduled with major shareholders this week, with some already
underway.
'These are meetings that normally take place after results announcements,'
he said. 'They didn't take place earlier because we were still in merger
talks.'
One U.K. fund manager, who requested anonymity, said Glaxo is 'sounding
out' the reaction of shareholders to a possible no-premium scrip bid for
SmithKline. For its part, SmithKline is seen rounding up support for a
defensive strategy that could include entering merger talks with other major
drug companies in the near future.
'We'll have to wait and see exactly what they both have in mid,' he said.
'That should become clear pretty soon.'
Around 1110 GMT, shares in Glaxo were down 23 pence at 1677 pence,
while SmithKline shares were unchanged at 760 pence. |
