Abbott Zooms On Stake Pick By Pharmacia

The share price of Abbott Laboratories was frozen at the 8 per cent upper circuit limit on the Bombay Stock Exchange at Rs 160.70.

The jump in the price was due to news that US drug major Pharmacia Corporation has acquired a 51.49 per cent stake of Abbott's US parent.

Only 235 shares of the multinational company were traded on the bourse with an outstanding position of 46,163 shares.

The stock recovered from the downturn it witnessed in the last three sessions when it lost 9.5 per cent to Rs 148.80 on January 29 from Rs 164.35 on January 24.

The rise at the counter was on the announcement that Pharmacia will make an open offer to the minority shareholders of Abbott for a 20 per cent additional equity.

According to reports, Pharmacia Corporation has entered into a definitive agreement with Abbott's parent Abbott Laboratories of the US to acquire the latter's 51 per cent stake in the company for $13.5 million. This roughly works out to a value of Rs 242.80 per share.

In December 2001, there were reports that Pharmacia & Upjohn, had signed a memorandum of understanding with Abbott Laboratories, US, to carry out a due diligence exercise on Abbott.

Abbott Laboratories, US, also has a majority stake in Indian pharmaceuticals company Knoll Pharma, and will not part with that stake as that company is more profitable than Abbott.