GlaxoSmithKline CEO Struggling To Get Key Shareholders In Her Favor Amid Pressure From Hedge Fund Activist Elliott Management

GlaxoSmithKline Plc's GSK CEO Emma Walmsley struggled to win over key shareholders after Elliott Management attracted converts for radical change at the company, the Financial Times reported citing leading investors.
Ahead of GSK's investor day on Wednesday (23 June), activist investor Elliott has sown doubt about whether Walmsley should stay to lead through the transformation planned after it spun off its consumer health division last year.
"Her background is in the consumer rather than healthcare, which may be why," according to one top-20 shareholder.
Some investors were attracted to the idea of a management change after discussions with Elliott, he added.
Another major shareholder has noted that Elliot does not seem to prefer Walmsley leading Glaxo's pharma unit and may also be pushing for an IPO of its vaccine unit. Elliott declined to comment.
Earlier, Elliott was reportedly in discussions over the future of Glaxo CEO, who was a former L'Oreal executive.
The GSK chief executive will focus her presentation on the promise of "new GSK," trying to prove she has the clear vision to refresh the drug pipeline if given the time to do so.
Price Action: GSK shares are down 0.06% at $39.81 during the market trading session on the last check Monday.