Aventis gains following Sanofi open offer

DALAL STREET SPIKES

Aventis Pharma's shares rose as much as 2.5 per cent to Rs 809.95 on the Bombay Stock Exchange on news that French drugmaker Sanofi-Synthelabo announced an open offer for up to 20 per cent of India's Aventis Pharma Ltd at Rs 792.20 per share.

This follows Sanofi's takeover of France's Aventis to form the world's third-largest drug company. The stock touched a high of Rs 818 before closing at above levels with a volume of 9,645 shares on the BSE.

Aventis holds 50.1 per cent stake in Aventis Pharma through its subsidiary Hoechst AG. The offer would open on October 7 and close on November 5. Select pharma counters gained while the overall market was down on selling pressure across the board.

The open offer for Aventis Pharma was necessary because of Indian regulations, as Sanofi would indirectly acquire this stake following its takeover of Aventis.