GSK was "forced" by American radical hedge fund Elliott, British officials decided to intervene in politics

CompilationFan Dongdong

Since Elliott Management, a well-known American hedge fund management company, bought a large number of shares in GlaxoSmithKline (GSK) last month, the company's future direction seems unclear.

According to the British "Times" report, the British government has asked officials to pay close attention to Elliott Asset Management's plans for GSK, worrying that activist investors may push the company to spin off adequately, or urge GlaxoSmithKline to be acquired by other companies.

It is not uncommon for Elliott to spin-off and make major reforms of the companies it invests in.

According to reports, hedge fund Elliott has built billions of pounds in GSK shares.

US "New York Times" reported that Elliott has apparently met with GSK shareholders and has notified shareholders that "changes are coming.

In response, the British Secretary of Commerce Kwarteng has asked relevant officials to support Walmsley's ongoing restructuring plan.

From the perspective of the company's three pillar businesses of medicines, vaccines, and consumer health care, GSK’s pillar business, vaccines, saw the most tragic decline.

It is worth noting that this is not the first time that the British government has directly and publicly intervened in capital's investment and adjustment of British pharmaceutical companies.

Vince Cable, the former Secretary of Commerce of the United Kingdom, publicly stated that “if anyone proposes any acquisition of GSK, the British government will make political intervention, because this was also a key factor in preventing Pfizer from acquiring GSK.

The British government's political intervention in GSK also included the support of a group of company boards and executive teams.

Reference source: GlaxoSmithKline's potential proxy brawl with activist Elliott has UK officials worried: report