GlaxoSmithKline shares soar \nafter Unilever bids for its consumer healthcare unit

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GlaxoSmithKline shares soar \nafter Unilever bids for its consumer healthcare unit
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GlaxoSmithKline shares soar after Unilever bid for consumer health unit

Shares of GlaxoSmithKline rose on Monday, while Unilever stock tumbled following a failed $68 billion bid by the latter to acquire the pharmaceutical giant’s consumer healthcare arm.

At the top of the decliner’s list, Unilever shares dropped 8%. The U.K. consumer goods group announced Monday that it will focus on higher-growth categories such as health, beauty and hygiene following a strategic review. That plan will include acquisitions and divesting lower growth brands and businesses, it said.

“In theory this war chest provides ample strategic optionality to rebuild a pipeline and invest in focus therapeutic areas, but at least initially we expect many shareholders would fear a large acquisition and the risk of inferior returns,” said the analyst. Jefferies rates GlaxoSmithKline a buy.

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