Adcock shares fall as CFR’s bid looks set to fail

Published Feb 5, 2014

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Adcock shares fall as CFR’s bid looks set to fail

Shares in Adcock Ingram fell to their weakest level in seven months yesterday, extending their decline into a third day after it became clear a $1.2 billion (R13.3bn) bid for the drugmaker by Chile’s CFR Pharmaceuticals was set to fail. Adcock shareholder Bidvest Group, which opposed CFR’s takeover, last week raised its stake to 34.5 percent, enough to unilaterally vote down CFR’s offer of R74.50 a share. Adcock, South Africa’s second-largest drugmaker, is to hold urgent talks with CFR following Bidvest’s buying spree and the Santiago-based company is widely expected to drop its stock and cash takeover offer. Adcock has shed nearly R1 billion of value since Friday – when it also warned first-half profit likely fell more 20 percent. The firm’s market cap, which was R11.93 billion last September slid to R10.78bn yesterday. At 5pm Adcock shares were down 2.37 percent at R61.50. – Reuters

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