Merger date booster for Burroughs Wellcome

DALAL STREET SPIKES

The Burroughs Wellcome stock gained nearly five per cent in a rather subdued market on Monday following the announcement of the record date for the merger of the company with GlaxoSmithKline Pharma (GSK).

The stock hit an intra-day high of Rs 940, before ending 4.93 per cent higher at Rs 914.85. The counter witnessed a volume of 6,997 shares on the BSE.

Analysts said Burroughs has been favoured by the merger ratio based on the ruling market prices of the two scrips. As per the merger ratio, Burroughs shareholders will receive seven shares of GSK Pharma for every five shares held by them in Burroughs.

The stock has been in the limelight of late on the back of broad-based rally in pharma stocks.

The Burroughs stock had risen 10.4 per cent in the last one month. The market's interest in shares of pharma multinational has gained strength with the product patent regime fast approaching on January 1, 2005.