Glaxo, SmithKline Aim to Close Deal in Weeks

Glaxo Wellcome and SmithKline Beecham, which said Friday they are in talks to create the world’s largest drug maker, will likely take several weeks to come to a detailed accord, officials said. If successful, it would create a company with $27 billion in sales and a market capitalization of more than $160 billion, ranking it among the world’s top companies. It would also be the biggest merger ever, topping WorldCom Inc.’s pending acquisition of MCI Communications Inc., valued at $36 billion. Talks between the two British drug makers came as SmithKline abruptly canceled talks over a planned union with Madison, N.J.-based American Home Products Corp. Under the tentative plan announced Friday, Glaxo would hold 59.9% of the new company and SmithKline the rest, reflecting Glaxo’s market capitalization of $95.7 billion at Friday’s close to SmithKline’s $70.3 billion.