Cipla Medpro rises to record high

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.

A pharmacist counts pills in a pharmacy. Credit: REUTERS

“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