Abott Lab makes open offer

SEBI had recently granted the US multinational an exemption from making an open offer for the mandatory limit of 20 per cent as it would be contrary to the government policy which permits an increase in foreign equity in pharmaceutical companies only upto 51 per cent.

The offer will open on September 15, 1997 and close on October 14, 1997 and will be made to those shareholders of Abbott Labs whose names appear in the register of members of the company at the close of business hours as on the specified date, August 4, 1997. The offer will be subject to a minimum level of acceptance from the public to the extent of 2,47,500 shares representing 11 per cent of the total paid up share capital of Abbott India. The US multinational, however, reserves the right to buy less number of shares in case the response from the public to the offer is less than 2,47,500 shares without any obligation. Abbott Laboratories, USA presently holds 8,91,000 shares of Rs 10 each and Abbott International Ltd, a subsidiary of Abbott, USA, holds 9,000 shares of Abbott Lab India.