Monday, November 20, 2006

GSK - investors say "spend spend spend"!

Investors in GlaxoSmithKline, the UK pharmaceuticals group, are demanding that the company take urgent steps to use its £2.3 billion cash pile, or face the prospect of a shareholder rebellion, reported the Independent on Sunday.

The report says institutional investors are pressuring GSK to use the mountain of spare cash on its balance sheet to make acquisitions and to bolster its pipeline of new drugs.

This is similar to the recent advice given to AZ by their major shareholders. AZ are currently mulling buying Shire, some sources say.

No comments: