A rumoured counter-bid by Pfizer for Ranbaxy is eerily similar to the US firm’s actions in November 1999 when it launched an aggressive bid to stop Warner-Lambert from being bought by American Home Products. To acquire Warner-Lambert, Pfizer ended up paying $20 billion more than what American Home Products offered. The jewel in Warner-Lambert’s crown was Lipitor — the cholesterol-fighting drug, in which Ranbaxy is the generic leader. The speculation now is Pfizer will go all out to outbid Daiichi. On November 4, 1999, hours after executives of the American Home Products and Warner-Lambert announced a $70-billion merger agreement, Pfizer scuppered the deal with a $82.4-billion hostile bid for Warner-Lambert. Though the Warner-Lambert board rejected the bid initially, Pfizer managed to acquire the company for $90 billion. The anti-cholesterol drug’s patent is on the verge of expiry in the US and European markets. Ranbaxy has entered into a legal battle with Pfizer to launch the drug in the US and European markets. Though Ranbaxy has not been greatly successful in its legal strategy, industry analysts feel that by acquiring Ranbaxy, Pfizer can control the generic market of Lipitor and the market for other blockbuster generic drugs.   more »

Reports suggest that the West Asian company, Al Rostamani may buy a 25% stake in Gujarat Heavy Chemicals Ltd, or GHCL for USD 200 million. Nikhil Sen, Head of International Strategy said that the West Asia initiative is an integral part of their strategy. However, he clarified that he cannot comment on the report of West Asian company's buying stake. Soda-ash is a very strong area of business for the company, he said. Sen added that the company is looking at bolstering both its soda ash and retail business in West Asia. The company is also in talks with some domestic and international companies regarding few verticals within India, he said. They may announce a deal in a few days, he said. (Money Control)    more »

A local media report said that Reliance ADAG was keen on acquiring stake in the airline, in which Tata Group has minority interest. The third largest listed private airline operator by sales had underperformed the market over the past one-month till 5 June 2008, declining 24.97% compared to the Sensex’s decline of 9.05%. It had also underperformed the market in the past one quarter, declining 42.49% compared to Sensex’s decline of 1.29%. The company’s current equity is Rs 240.65 crore. Face value per share is Rs 10. Vijay Mallya-promoted Kingfisher Airlines and the countrys largest private sector carrier Jet Airways are also said to be in fray for picking up a stake in SpiceJet. SpiceJet, which just completed three years of operations, is valued at around Rs 755 crore, according to its market capitalisation. Anil Ambani had also evinced interest last year to buy a controlling stake in Deccan Aviation. Rising aviation turbine fuel (ATF) prices will hit airlines. Airlines re suffering huge losses and they cannot pass the entire burden (of jet fuel price rise) on users as it negatively affected the number of passengers carried by them.   more »

Noida-based infrastructure developer Jaiprakash Associates is considering a dilution of its equity to fund the initial expenses of the Rs 40,000-crore Ganga Expressway Project. If market sources are to be believed, the company is in talks with a handful of foreign investors. This is not the first time Jaiprakash Associates is offloading stake to fund a project. The company had raised Rs 1,150 crore by selling 1% stake to ICICI Bank. The dilution was effected to capitalise Jaypee Infratech, a subsidiary company formed to develop, construct and operate Taj Expressway, a 165-km, six-lane access controlled toll expressway between Noida and Agra in Uttar Pradesh.   more »