Jhunjhunwala, shareholders question Fortis-Manipal deal over valuations

Analysts feel Fortis Healthcare share holders are at a disadvantage and deal valuations had been short of expectations

Ace investor Rakesh Jhunjhunwala and many minority investors are said to be questioning the Fortis healthcare deal with Manipal Hospitals, as per news reports. A private equity firm has also been reported of having increased its stake in Fortis healthcare to attain extra voting rights of about 9.73 per cent and is said to be wooing some more minority investors including hedge funds to oppose the deal.

All this, however, is not surprising. The disappointment of the investors on Fortis-Manipal hospital deal was well evident from the day of announcement of the deal itself. Fortis healthcare (FHL) share prices had seen