Shire seems to be one of those companies where everyone other than the management of the company are aware that below £30 it is fundamentally “too cheap” and that anyway, on a big picture basis, its future should be entwined with a larger international player.
Of course, for many large companies these days, the combined business prevention entities of politicians, regulators and the anti-rich squad mean that many a decent deal like GKN gets blown out of the water. However, in the case of Shire it could very well be that it is days, rather than weeks or months, before some M&A developments are forthcoming. On this occasion the company would be mad to protest.
At the very least, current share price levels should offer a near term boost despite a falling market. It has been interesting that despite the plunge in stocks, smaller group Vectura (VEC) was up 8%, suggesting that drugs may be regarded a more defensive in a rising interest rate environment.
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The Laughing Cavalier was Dutch, so it seems correct that The Marmite Profiteer is off to Holland. The last time Unilever tested the axiom, “There is no such thing as bad publicity” was when it raised the cost of Marmite by 10% after Brexit. Now it would appear Brexit has had the last laugh, despite the denials.
To Holland With Dove
Just as one might expect, the media is delighting in news that Dove to Marmite maker, Unilever, has announced it is heading off to the Land of the Clog. This development has been given the “I told you so!” treatment in terms of the Brexit aftermath. But it may be a case of Good Riddance! and perhaps, Good Luck!
Ironically enough at a time when many of us should be more health-conscious in terms of our dietary input, it is interesting that the bulk of the company’s fayre consists of ultra high processed food, of which the pinnacle of haute cuisine is of course Pot Noodle. Certainly, this is the case if one at least eliminates the PG Tips, which were actively promoted as a tea loved by chimpanzees.
8 Figure Salary
But looking through the recent news flow of the Anglo Dutch giant, one can see that it seems to be somewhat cash strapped and therefore an element of leaving the UK must be down to cost saving. This is over and above the fact that the CEO takes home over £10 million a year, which is an eye watering figure in anyone’s book, and perhaps the Great British Public are starting to eat less prepared food.
As stated at the time, it was an error for Unilever to reject the £143bn Kraft Heinz offer, so now rather than heading off to processed food heaven, Unilever is heading off to Amsterdam. Once again one wonders how much of the rejection their was done in the interests of the management, and how much for the shareholders? What can be said is that this is no great Brexit thumbs down (it will only happen in name, if at all), this is just a sleeping giant multinational shuffling off with its tail between its legs, trying to cut costs.
This week saw Corbyn backing the Customs Union, and May’s begging speech to the EU, with five conditions that will never be met. It is clear that Brexit will never happen, with the game now to string along the Leavers for as long as possible. So far even the clever ones like Rees Mogg think Brexit will eventually happen. The cliche which applies is death by a thousand cuts.