GSK offloads Haleon stake for £804m
Drugs giant GSK has made £804 million by selling a 2.5% stake in the Sensodyne-to-Voltaren consumer healthcare business Haleon.
GSK offloaded the shares in its former division at 335p, which compares with Haleon’s share price of 342.85p at yesterday’s close.
The pharmaceuticals company still holds a 10,3% stake in Haleon, alongside former partner Pfizer with a 32% holding. Both have pledged not to sell more shares in the next 60 days. Haleon joined the stock market in July 2022.
Separately, GSK said it welcomed the decision of the British Columbia Supreme Court to dismiss a proposed class action relating to heartburn drug Zantac.
FTSE 100 seen higher despite US weakness, oil below $75
The FTSE 100 index is expected to begin today’s session 22 points higher as the lacklustre week for global markets draws to a close.
The opening bell call by CMC Markets to 7752 comes after the Dow Jones Industrial Average and S&P 500 index fell 0.7% and 0.2% respectively. The FTSE 100 index finished 0.1% lower yesterday.
Wall Street’s sell-off came amid mounting concerns about the economic outlook, as well as the US debt ceiling and plight of regional banks.
One bright spot came from the tech sector as the Nasdaq edged up 0.2% on hopes that US interest rates are at their peak.
Brent crude futures today stood at $74.39 a barrel, having fallen sharply yesterday as China’s disappointing trade figures added to concerns about the global economic outlook.
‘This is not the mark of an economy in good health’
Jeremy Batstone-Carr, European Strategist at Raymond James Investment Services, says the economy certainly is in good health, but continues to show its resilience with continued quarterly growth.
“The British economy managed to eke out a slither of growth in the first three months of the year, with growth standing at 0.1%,” he said. “This is not the mark of an economy in good health, but it does continue to demonstrate its underlying and surprising resilience.
“The slight growth shows the economy has managed to dodge the worst of a number of negative pressures, including still high inflation, the lagged effects of earlier rate rises, and, with a sigh of relief from the government, widespread industrial action.”
UK GDP down by 0.3% in March, but up in Q1
UK GDP was down by 0.3% in March, underperforming expectations, but the economy still grew by 0.1% in Q1.
“Despite the UK economy contracting in March, GDP grew a little over the first quarter as a whole,” ONS Director of Economic Statistics Darren Morgan said.
““The fall in March was driven by widespread decreases across the services sector. Despite the launch of new number plates, cars sales were low by historic standards – continuing the trend seen since the start of the pandemic – with warehousing, distribution and retail also having a poor month.
“These falls were partially offset by a strong month for manufacturing as well as growth in gas production and distribution and also in construction.
“Across the quarter as a whole growth was driven by IT and construction, partially offset by falls in health, education and public administration, with these sectors affected by strikes.”
With the economy growing for the quarter, the UK now cannot meet the technical definition for a recession until the third quarter at the earliest. Yet the March decline and slow growth for the quarter as a whole will not give much reason for optimism.
Deal’s off with Apollo, says THG
THG has ended takeover discussions with Apollo Global Management, the e-commerce retailer said today.
Shares in the firm soared last month after it revealed the investment firm had made a non-binding offer to take the company private.
But in an update today the company said: “Following receipt of the Indicative Proposal, the Board of THG entered into a short period of discussion with Apollo to provide it with an opportunity to improve the proposed valuation and confirm the structure of its Indicative Proposal.
“It has become clear to the Board, supported by shareholders representing a majority of THG’s issued share capital, that there is no longer any merit in continuing to engage with Apollo.”
