"Bringing two companies that have a problem creates a group with a problem twice as big, cutting costs through thousands of layoffs is a recipe that doesn't work"
(Il Sole 24 Ore Radiocor) – New York, February 24 – Eli Lilly, the fifth largest American pharmaceutical company, is not for sale. The managing director reiterated this in an interview with the Financial Times John Lechleiter, explaining that they have examined large-scale combinations of other groups and that they have understood that "joining two companies that have a problem creates a group with a problem twice as big, cutting costs through thousands of layoffs is a recipe that works".
That said, Eli Lilly is considered by experts to be an obvious target for a takeover: with a market capitalization of nearly 80 billion, it could be tempted by giants like Pfizer, while companies like Valeant could be interested in the R&D savings generated by a potential deal. Lechleiter spoke of the company's "structural defenses", such as the fact that the largest shareholder, with a 12% stake, is the charitable foundation Lilly Endowment and the fact that the law of the state of Indiana, where Eli Lilly is based , prohibits hostile takeovers.
(RADIOCOR) 24-02-15 15:26:46 (0347) 5 NNNN
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Editor's note: John C. Lechleiter Ph.D Chairman, Chief Executive Officer and President, Eli Lilly and Company, received total compensation in fiscal 2013 of $ 11.217.000
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