NEWS: Gehe hires Citigate for Lloyds bid

Gehe, the German pharmaceutical wholesaler, has turned to Citigate Communications for PR advice as it launches a pounds 584 million counter bid for Lloyds Chemists.

Gehe, the German pharmaceutical wholesaler, has turned to Citigate

Communications for PR advice as it launches a pounds 584 million counter

bid for Lloyds Chemists.



Gehe - Europe’s largest drug distributor - confirmed this week it that

would make a rival bid for Lloyds Chemists, which is already the

subject of an agreed pounds 540 million offer from Unichem.



Citigate executive director John Rudofski, who is leading the four-

strong team on the account, said that Gehe had asked the agency to deal

with the financial media, investors and analysts following market

speculation last month that it might make a bid for Lloyds.



‘We were helping to prepare the ground in the event of a bid,’ said

Rudofski. ‘Gehe was being rumoured about so much that they needed help

over here in London.’



The account is being run on a project basis but may lead to a longer

term relationship now there is a formal bid.



Citigate was hired without a competitive pitch on the basis of its work

for Gehe during the company’s hostile pounds 400 million takeover of UK

drugs distributor AAH last year.



Acquiring Lloyds would boost Gehe’s existing 30 per cent share of the

British drug retailing and wholesaling market to 35 per cent.



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