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GlaxoSmithKline to Reconsider Price for Stake in Nigerian Unit

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July 23 (Bloomberg) -- GlaxoSmithKline Plc, the U.K.’s biggest drug-maker, will consult Nigerian shareholders and that country’s regulator before making a fresh bid to increase its stake in the local unit.

The company, which is at the center of a bribery and corruption probe in China, withdrew a plan yesterday “after the parties did not conclude on where to pitch the price,” GlaxoSmithKline Consumer Nigeria Plc Chairman Olusegun Osunkeye told reporters in Lagos, the commercial capital, today. “Glaxo will consult with Nigerian shareholders and regulator to come back with acceptable plan.”

Glaxo agreed with its Nigerian unit in November to raise its stake to 75% from 46.4% at 48 naira a share. Nigerian shareholders want it to pay the prevailing market price “and will resist any attempt to obtain their shares at an unfair price or by force,” Godwin Anono, the president of Standard Shareholders Association of Nigeria, which represents minority shareholders, told a meeting.

Glaxo Nigeria gained for a second day, adding 2.6 percent to 60 naira at the close on the local exchange. The stock has surged 33 percent this year, in line with a 35 percent gain for the Nigerian Stock Exchange All-Share Index.

“We understand the difference in the stock price today from what it was when the offer was made and will consider appropriate amendments to the initial offer,” Osunkeye said.

To contact the reporter on this story: Emele Onu in Lagos at eonu1@bloomberg.net

To contact the editor responsible for this story: Vernon Wessels at vwessels@bloomberg.net

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