GSK Strategy Questioned19 Mar 2016 18:51
Exerts from article in today's (19.03.16) FT, page 14 bottom left headed: "GSK strategy questioned as search for new chief begins". Outgoing GlaxoSmithKline chief executive Sir Andrew Witty said that GSK was on course for a return to earnings growth after several years of decline. Critics of Sir Andrew's strategy, led by Neil Woodford, the UK fund manager and GSK investor, say a break-up would unlock value for shareholders. Sir Andrew insisted the board remained "unanimously committed" to the existing model. Analysts said that while Sir Andrew's strategy was unlikely to be ditched, there could be a rethink of GSK's high-yielding dividend. "We see it as possible that a new CEO prioritises M&A to bolster its pharma business putting the dividend at risk longer term", said Richard Parkes at Deutsche Bank. GLA.