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GSK Share Price Surges On Reported Interest from Private Equity Firms

The GSK share price has surged this Tuesday after reports came in of several private equity firms showing interest in the pharma company’s consumer unit.

GlaxoSmithKline’s consumer division is worth $54 billion, according to a Bloomberg News report. This report names CVC Capital Partners, KKR & Co, Advent International, Blackstone Inc, Permira and Carlyle Group Inc as the firms interested in a potential buyout. 

The valuation of the consumer unit of GSK means that any buyout would be the largest of all time. The news has produced considerable demand for the stock this Tuesday. Consequently, the GSK share price is up 2.63%, taking it to the third position of the gainers’ list on the FTSE 100. 

GSK Share Price Prediction

Tuesday’s price surge has pushed the stock above the 1415.0, 1432.0 and 1450.0 resistance barriers. A slight pullback before a continuation would bring 1470.4 and 1497.2 into the picture as potential targets to the north in the short term.

On the other hand, the sentiment could favour dip-buying opportunities, which brings up 1432.0 and 1415.0 as potential candidates for the support pivot. However, a decline below 1382.6 makes 1359.0 available and could dampen sentiment enough to drive further selling to 1323.2 if the buyout news is downplayed. 

GSK: Daily Chart

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