Gehe gives Unichem a headache in drugs battle

Article Abstract:

Gehe and UniChem are both bidding for Lloyds Chemists which is valued at some 650 million pounds sterling by both bids. UniChem has 430 shops and would add some 920 more shops from Lloyds. This would initially dilute earnings but would boost earnings in 1998 through disposals and reductions in costs. Gehe may raise its bid, and there are uncertainties faced by UniChem over possible actions by the UK Office of Fair Trading. Shareholders in Lloyds Chemists should wait before making a decision.

Mergers, acquisitions and divestments, Gehe AG, UniChem PLC

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Lloyds Chemists

Article Abstract:

Lloyds Chemists is subject of a bid battle which has helped buoy the company's share price. The company's operating profit rose in 2nd half 1995, but losses resulted from real estate disposals, and this, with increased interest changes affected pre-tax profit. Sales are affected by lack of certainty as to who will own the company. Pharmaceutical wholesaling has dropped by 10% in 1996, though veterinary products are performing well.

Drugs and Druggists' Sundries Wholesalers, Drugs, proprietaries, and sundries, Drugs Wholesale, Management, Drug wholesalers

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