Higher bid expected for Fisons
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.By Patrick Hosking
RHONE-POULENC RORER, the American-based drugs group, is expected to lift its hostile bid for Fisons by around pounds 100m to pounds 1.8bn next week.
Advisers to RPR believe another 15p to 20p on the 240p-per-share offer price will be enough to win control of the company.
Next Friday is Day 46 of the bid, the last day under takeover rules on which RPR can lift its offer unless a rival bid is tabled.
Fisons shares closed the week at 257.5p, indicating that the stock market believes RPR will have to sweeten its offer a fraction.
But sentiment has moved away from Fisons over the last few weeks, as it became apparent it has been unable to find a white knight. Further delay in its attempt to sell its scientific instruments division has also disappointed shareholders.
On Friday, Fisons, advised by SBC Warburg, unveiled the final plank of its defence, announcing fresh co-operation deals with Ciba-Geigy, Magainin Pharmaceuticals and 3M. It also forecast operating profits in the pharmaceutical division of at least pounds 100m and promised a final dividend of 3p, making a total for the year of 5p.
RPR, advised by Lehman Brothers, dismissed the new defence, arguing that the new joint ventures would not add meaningfully to sales or profits before the 21st century.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments