By Denise Roland
Swiss pharmaceutical company Novartis AG (NVS) Chief Executive
Joe Jimenez has softened his stance on selling the company's $15
billion stake in crosstown rival Roche Holding AG (ROG.VX), saying
he is no longer convinced that the shares need to be sold at a
premium to the market price.
Mr. Jimenez told investors at the company's Capital Markets Day
Thursday that the rally in Roche's stock relative to the broader
market meant that fetching a premium for the stake was no longer a
prerequisite for Novartis to sell it, according to analysts at
Morgan Stanley. A company spokesman confirmed Mr. Jimenez's
comments, which mark a shift from last year, when the he said the
stake was "worth something more than the market price."
The same Morgan Stanley note also quoted Chairman Joerg
Reinhardt as saying that a sale of the Roche stake was "not a
burning topic at the moment," and the company spokesman stressed
the company was in no rush to sell the stake.
Novartis' sizeable stake in Roche--which represents around a
third of voting shares--dates back to a period in the early 2000s
when former Chairman Daniel Vasella built up the holding while
eyeing a possible merger between the Swiss pharmaceutical
companies.
A spokeswoman for Roche declined to comment.
Write to Denise Roland at denise.roland@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires