Orchid sees value pick by Ranbaxy
BS Reporter / Chennai/Tokyo April 11, 2008
Deputy MD says Solrex is linked to Ranbaxy, but stake buy isn� t a takeover attempt.
Orchid Chemicals & Pharmaceuticals said today that major stakeholder Solrex
Pharmaceuticals is linked to Ranbaxy Laboratories, but it did not expect a takeover
Privately held Solrex has acquired an 11.4 per cent stake in Chennai-based Orchid, a bulk
drugs and formulations maker, in just two weeks. Orchid shares have doubled in recent
weeks amid Solrex's buying and speculation it was linked to Ranbaxy and was preparing
a takeover, but they fell 3 per cent to Rs 225.85 on Thursday.
Orchid Deputy Managing Director C B Rao told reporters in Tokyo that Solrex is
understood to be an investment unit of Ranbaxy, India's biggest drug maker by sales.
But I would conclude it is a ...value pick (rather) than a takeover attempt, he said.
Shares in Orchid had dropped sharply after Bear Stearns was forced to quick