Pfizer And Abbott Laboratories gained positively on the bourses today following news that Pharmacia and Pfizer are considering merger at the global level. Pharmacia is the parent of Abbott Laboratories in India.
While Abbott Labs hit the 10 per cent upper circuit both on the Bombay Stock Exchange as well as on the National Stock Exchange (NSE) on reports of the parent's takeover, Pfizer was up 2.48 per cent on the BSE.
Abbott Laboratories, closed at the upper limit of 10 per cent at Rs 171.85 on the BSE. A total of 456 shares changed hands. At its ceiling, the outstanding buy position was 3,578 shares.
Between July 10 and 12, 2002, Abbott lost 4.14 per cent to Rs 156.25 from Rs 163. On the NSE, the scrip closed at the upper limit of 10 per cent at Rs 179.25 and a total of 19,028 shares changed hands.
On the other side, Pfizer closed the day on the BSE at Rs 449.90, up by 2.48 per cent and a total of 5,490 shares changed hands. On the NSE, a total of 11,411 shares changed hands.
Abbott Labs surged on hopes of an open offer following reports that Pfizer Inc has agreed to take over the company's parent Pharmacia Corporation. The scrip moved up on reports that Pfizer is acquiring Phamacia Corporation for $60 billion in stock (the transaction is expected to be announced later in the day, it has been approved by the boards of both companies).
The global takeover has generated optimism that the new management will make a 20 per cent open offer in the Indian company. Earlier this year, Pharmacia Corporation acquired Abbott Labs.
Pfizer rose on today's likely announcement by its US parent in the US today it agreed to take over Pharmacia Corp. With the change in management, Pfizer will have to make an open offer for an additional 20 per cent stake in the company to the minority shareholders according to the Sebi takeover code.
Earlier, Pharmacia Corporation had concluded its open offer for 20 per cent equity stake in Abbott Laboratories.
