Wyeth spurts as board to consider merger with Pfizer

Wyeth surged 5.95% to Rs 823 at 11:32 IST on BSE, with the stock extending Wednesday's 20% rally triggered by the company and Pfizer announcing that the board of directors of the two companies will separately consider merger proposal.

Shares of Pfizer were up 0.69% at Rs 1425.60.

Meanwhile, the S&P BSE Sensex was down 226.12 points or 1.1% at 20,409.01.

On BSE, 1.11 lakh Wyeth shares were traded as against average daily volume of 5,629 shares in the past two weeks.

The stock hit of Rs 860 and a low of Rs 762.80 so far during the day.

Shares of Wyeth have rallied 27.13% in two trading sessions from Rs 647.35 on 19 November 2013 after the company and Pfizer before market hours on Wednesday, 20 November 2013, announced that the board of directors of the two companies will separately consider merger proposal. The stock surged by the maximum permissible level of 20% to settle at Rs 776.80 on Wednesday, 20 November 2013.

Wyeth said that its board will meet on Saturday, 23 November 2013, to consider a scheme of amalgamation of the company with Pfizer. The board of Pfizer will also meet on 23 November 2013 to consider the proposed amalgamation.

While, globally Pfizer and Wyeth are single entities, they operate as separate entities in India.

Wyeth's net profit fell 39.2% to Rs 18.38 crore on 9.9% growth in net sales to Rs 168.76 crore in Q2 September 2013 over Q2 September 2012.

Wyeth is one of the Indian listed subsidiary companies of Pfizer Inc, the world's largest research-driven pharmaceutical and health care products companies. Wyeth is a market leader in India in oral contraceptives, folic acid and depilatory cream.

Powered by Capital Market - Live News