Glaxosmithkline Share Price (GSK)

I agree with casapinos that yesterday’s announcement sets a new and hoggish baseline for the value of GSK Consumer. Previous it was reported to be valued at £40bn which represents about £5.54 per share. Now the new valuation has risen to about £6.80 per share. This would imply a Pharma valuation of £9.61 using Fridays closing price. A fair value for Pharma is over £13 using 2022 forecast earnings. Therefore a rerating by the market is likely.

For what it’s worth I think the Consumer division will go for £55b + £10b debt. When the shares were down at £12 last year I bought and valued the total sum of the parts at £110b and I stand by that. Shares worth c£21-22 on that basis. Fully expect both Pharma and OTC to be swallowed up by 2023.

I think it unlikely this bid will go through i cannot see how Unilever can afford it but i think it means that we are in play for a bid from else where possibly and the seeds have been sown and worst case scenario is it give GSK a kick up the backside and start to get things moving at their end. IMO

Unilever shareholders would be hard pushed to even back the bid.
Considering GSK revenue of £10 billion last year in the height of the pandemic- it would be fair to say it will achieve around £15 billion revenue a year in 2022 on wards, so what accept a well under value for what is a big income generator ..
GSK have commented
https://www.gsk.com/en-gb/media/press-releases/update-gsk-consumer-healthcare/

I hold both GSK and ULVR and each represents about 3% of my folio-I'm up 22% on GSK and ~5% on ULVR.Here are my thoughts on the news.
There was no RNS because the talks will be described as "preliminary..exploratory.." There will be RNS's from both companies tomorrow .
I suspect that Elliot had wind of these approaches before they intervened in GSK's affairs and will stand to make a significant profit from the bounce in GSK's SP, they will comment positively soon.
The news sets a new and highish baseline for the value of GSK's consumer division whether it be bought or spun off which is significantly good news for GSK and will very positively affect the SP.
It is bad news for ULVR ,smacking of desperation to move a slumbering giant forward and will sharply negatively affect the SP. They must now know a minimum of 10% more will be needed at best to clinch a deal and their debt position will look pretty
grim.I will probably try to sell in the morning hoping to escape at B/E or thereabouts
I am happy to hold GSK expecting , at least in the short term , expecting to see a double figures percentage bounce in the SP