7th Jun 2006 15:09
GlaxoSmithKline PLC07 June 2006 Issued - Wednesday 7th June 2006 Extension of hedging transaction on Quest Diagnostics Inc shares GlaxoSmithKline plc (the "Group") announced today that it has extended thematurity of its hedging transaction with Lehman Brothers Finance S.A. withrespect to 10 million shares of common stock of Quest Diagnostics Inc ("Quest"),representing approximately 27.4% of the Group's holding in Quest (the "Shares").The Shares were acquired as a result of the sale of the Group's clinicallaboratories business to Quest in 1999. The Group currently holds approximately18.4% of the issued share capital of Quest. The hedging transaction is a post-paid variable sale forward ("VSF") with arevised average term of approximately five years from today. The extension hasenabled the Group to increase the floor price from US$40.96 to US$49.57 pershare and increase the average appreciation cap from US$55.92 to US$65.02 pershare. The principal objective of the VSF is to protect the value of some of theGroup's shareholding in Quest, by setting a floor price for the Shares, whilstallowing the Group a capped participation in any further appreciation in theShares. Whilst the Group has the flexibility to wind-up all or part of the VSFat any time, the Group does not currently expect to realise any profit under theVSF in the foreseeable future. Simon BicknellCompany Secretary 7th June 2006 About GlaxoSmithKline GlaxoSmithKline - one of the world's leading research-based pharmaceutical andhealthcare companies is committed to improving the quality of human life byenabling people to do more, feel better, and live longer. For companyinformation, visit GlaxoSmithKline at http://www.gsk.com. Enquiries: UK Media enquiries: Philip Thomson (020) 8047 5502 Alice Hunt (020) 8047 5502 Gwenan Evans (020) 8047 5502 US Media enquiries: Nancy Pekarek (215) 751 7709 Mary Anne Rhyne (919) 483 2839 Patricia Seif (215) 751 7709 European Analyst/Investor enquiries: Duncan Learmouth (020) 8047 5540 Anita Kidgell (020) 8047 5542 Jen Hill (020) 8047 5543 David Mawdsley (020) 8047 5564 US Analyst/ Investor enquiries: Frank Murdolo (215) 751 7002 Tom Curry (215) 751 5419 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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