http://www.reuters.com/article/2013/12/03/adcock-bidvest-idUSL5N0JI2EV20131203?rpc=401&feedType=RSS&feedName=rbssHealthcareNews&rpc=401
Dec 3 (Reuters) - The board of South African
drugmaker Adcock Ingram said on Tuesday it believed a
$1.2 billion takeover bid from Chile's CFR Pharmaceuticals was
still the best option for shareholders, rebuffing a rival offer
from a local suitor.
Adcock, South Africa's second-largest drug company, said the
domestic suitor, industrial conglomerate Bidvest Group,
had not clearly articulated the benefits of its offer.
Bidvest on Monday challenged CFR's $1.2 billion
takeover bid for Adcock on two fronts - seeking nearly a third
of Adcock's shares and launching a court order against the
offer.
Bidvest had previously attempted to acquire a controlling
stake in the underperforming drugmaker, but its original bid was
dismissed by Adcock's board as "opportunistic".
If Bidvest is successful in raising its Adcock stake from 4
percent now, it could thwart the CFR takeover, which requires
approval from holders of 75 percent of Adcock shares.
Adcock said in a statement its board believed the CFR offer
was still "the most attractive opportunity for Adcock Ingram
shareholders to maximise value".
It said Bidvest had not clearly articulated the benefits of
its offer to shareholders, or how it would manage "potential
conflicts of interest".
It did not identify those possible conflicts of interest.
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