In a new twist to the Ranbaxy-Orchid takeover drama, Ranbaxy Laboratories CEO Malvinder Singh on Wednesday said his company had no hostile takeover intentions.For the third day in succession, Mr Singh, however, declined to comment on the relationship between Ranbaxy Laboratories and Solrex Pharmaceuticals, the company that has mopped up 12% in the Chennai-based Orchid Chemicals from the secondary market.
However, if Mr Singh’s statement is taken on face value, it means that the threat of a hostile takeover of Orchid has receded for now. It is unlikely that with a 12% stake, Ranbaxy Laboratories or Solrex will be content with being just a financial investor in Orchid.
The buzz on the Street is that Ranbaxy will engage in discussions with the Chennai-based drugmaker for an amicable takeover or some sort of strategic alliance, which could include a contract manufacturing tie-up.
Mr Singh declined to comment on whether the company plans to buy more Orchid shares or strike an alliance with it. When asked to react to Mr Singh’s statement that India’s largest drugmaker has no hostile takeover intentions, Mr Rao said: “I don’t have any comment to offer at this point in time. I cannot share my strategy at this stage.
Read more in The Economic Times article.
No comments:
Post a Comment