The stocks of Ranbaxy and multinational Pfizer shot up in the market on Friday amidst speculation that the largest drug maker in the world is getting ready to make a counter offer to acquire the largest pharma company in India. Ranbaxy Laboratories rose 4.31 per cent to Rs 566.90 on heavy volume of 22.34 lakh shares on the BSE. Marketmen is speculating that Pfizer is likely to make a hostile bid for the 65 per cent stake in Ranbaxy not held by its founders. Daiichi Sankyo, Japan's third-largest drug maker, had agreed on June 11 to buy a controlling stake in Ranbaxy for as much as $4.6 billion. Pfizer's Indian arm surged 4.76 per cent to Rs 620 on the BSE. Other pharma stocks like Dr Reddy's Laboratories (up 3.96 per cent to Rs 728.55) and Biocon (up 1.34 per cent to Rs 483.15) also edged higher. While Pfizer officials were not available for comments, a Ranbaxy official said, “We’re not aware of any bid by Pfizer. The deal with Daiichi is a binding agreement.” Even as Pharma stocks rose, the BSE Sensex lost 60.58 points at 15,189.62 as a surge in inflation to a seven-year high and weak European markets kept bulls in check. Sensex had gained 360.95 points in last two trading sessions supported by strong global cues and robust April 2008 industrial production data announced by the Indian government during trading hours on 12 June 2008. Though market analysts rule out the possibility of making a bid for 65 per cent stake in Ranbaxy, they said nobody can prevent any company from making a hostile bid. “It’s possible to launch a bid as per the Indian takeover rules. It's a different question whether they will succeed or not. The rise in Ranbaxy and Pfizer is purely speculative. unless Pfizer comes out with a formal announcement,” said an analyst with an Indian brokerage.The Singh family has sold its 34.8 per cent stake to Daiichi. While FIIs hold 17.95 per cent stake, insurance companies (19.88 per cent) and others (including public) holds 27.3 per cent stake. 4.31%The rise in Ranbaxy stock on the BSE. It closed at Rs 566.904.76%The rise in Pfizer stock on the BSE. It closed at Rs 620
