Johannesburg - Shares in Cipla Medpro rise to a record high as investors bet its Indian suitor Cipla Ltd is likely to raise its $215 million offer for control of the South African generic drug firm.
Cipla Medpro, which has been trading since mid-December above the 8.55 rand per share offer that Cipla Ltd put on the table in November 2012, is up 0.5 percent at 9.45 rand.
“The market is telling you that Cipla Ltd is going to have to raise the price,” said Andrew Bryson, a trader at BoE Stockbrokers.
Johannesburg stock market players has been betting on a sweetened offer from Cipla Ltd for months after Cipla Medpro won a lucrative state contract that will boost its earnings. - Reuters