To me, the case of breaking-up GSK is pretty strong. The CEO selection controversy shows that it has grown into a conglomerate that is too complex to be run by a single management team. There should not be much synergies among the pharma and consumer products divisions. Clearly, they also appeal to very different investor clientele - pharma is inherently a risky business compared to the steady cash flow from the consumer division.
Given that an insider being named as the new CEO, it shows that a break-up is unlikely to happen soon. With the recent share price run-up, probably it is time to take profit.
https://www.ft.com/content/91d967dc-7ef8-11e6-8e50-8ec15fb462f4
GSK taps consumer goods veteran Emma Walmsley as new chief
Andrew Witty to step down in March 2017 at helm of Britain’s biggest pharmaceuticals group
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