Pushkala Aripaka, Ludwig Burger

(Reuters] – GlaxoSmithKline’s (NYSE:) plan to sell its consumer business in the next year is now “firmly on track”, the British drugmaker stated Tuesday. The announcement came on Tuesday after Bloomberg News said that GlaxoSmithKline could be interested in private equity bids, such as CVC, Advent, and KKR.

According to the report, unidentified sources with information about the subject suggested that the division which produces Sensodyne toothpaste and Advil painkillers and Panadol, might also be of interest to big pharmaceutical and consumer goods corporations.

The unit may be worth as much as 40 billion pounds (or 54 billion dollars).

GSK declined to comment about whether there was takeover interest from the US drugmaker. Pfizer (NYSE:

GSK shares, which are listed in London, were boosted by the report to 4,8% and pushed up to 1,460.2 pence.

GSK Representative said that GSK was well on its way to separating Consumer Healthcare.

Following Elliott’s suggestion that GSK might sell the consumer unit, the company made plans to transform the consumer arm of the company into an independent listed company. The company has since defended these plans.

We have heard from our shareholders that the majority of them want to be part of the Consumer Healthcare Company as an incorporated entity by way of the merger. GSK spokeswoman said that the GSK board will fulfill its fiduciary duty to consider all alternatives.

GSK will give stock to shareholders in its new consumer health group equal to at least 80 percent of the current 68% share that GSK has in it. Pfizer holds the 32% remaining.

The group stated that New GSK will sell its remaining 20% share “in a timely fashion”. Pfizer also stated that it will seek exit from its shareholding.

Elliott in July stated that GSK had a large stake. A conservative estimate of GSK’s consumer unit shareholding would be around 34 billion Pounds. That works out at roughly 50 Billion pounds.

Brokerage Jefferies has estimated its value at 45 Billion Pounds.

Bluebell Capital Partners is another activist investor. It holds a lesser stake in GSK. Bluebell Capital Partners said that the company’s consumer division should be attractive to private equity and trade buyers.

Elliott stated that a unit sale to an industry peer would attract a significant premium to the estimated value of the unit due to possible synergies up to 10%.

Bluebell also wrote to Jonathan Symonds, GSK chairman, Oct. 11 in an open letter. He stated that he and Emma Walmsley, Chief Executive, should both be fired. This was in response to the Oct. 7 investor meeting.

GSK responded, saying that they completely rejected the claims and content of this letter. These aren’t representative of the discussions at the meeting, or of most of our shareholders views.”