Quest Diagnostics Buying Back All Their Stock Owned By GlaxoSmithKline Their Largest Investor-Over $30 Million Shares
Posted Feb 02 2011 12:00am
This is a big buy back and after all is said and done, Glaxo will no longer have any interest in Quest Diagnostics. Now today Quest is also making stock available to the public with 15.4 million shares at a little over $55.00 a share. Glaxo has not had the best pubic image of late with the factory in Puerto Rico, the big fine and last but not least Avandia.
Quest seems to be saying bye bye Glaxo, their largest single investor. Back in 2009 I had a chance to chat with Quest Diagnostics and we talked about where they were headed and today I look back they are pretty much on target. BD
Quest Diagnostics Incorporated (NYSE: DGX) today announced that it had agreed to repurchase at a negotiated price 15.4 million shares of its common stock from its largest shareholder, an affiliate of GlaxoSmithKline plc (GSK). Subsequent to the transaction, GSK will no longer hold any shares of common stock of Quest Diagnostics.
"Through this transaction, we are taking advantage of a unique opportunity to enhance shareholder value and demonstrating confidence in the long term outlook for our business," said Surya N. Mohapatra, Chairman and CEO of Quest Diagnostics. "We continue to maintain the financial flexibility to pursue acquisitions, which remains a key element of our growth strategy."