Warner-Lambert Share Selling

As Warner-Lambert stock hit new records in January, company people, including chief financial officer Ernest Larini, sold company shares valued at $11.9 million. W-L shares have soared about 17%, despite lackluster earnings, ever since Pharmacia & Upjohn announced their merger plans last August.

While the options-related trades came amid speculation that the company is a takeover target, analysts feel the "insider" share sales could be an indication that such a move is not imminent. David Saks of Gruntal & Co questioned why, if the rumors "were so hot and close and employees knew of it," they would be selling. If a takeover were close, an internal auditing commission at the company "would put a muzzle on any insider trading," he added.

A company spokesman said the "insider-share sales" were not unusual, and that company employees periodically exercise their options. All these people exercised options to buy shares at a discount, and sold them at market value. Most of the sales were done on January 2, when the company closed at a record $98.50.