Dynamite Cynamid

Last week's close: Rs 464

Previous week's close: Rs 414

The share price of Cynamid spurted 12 per cent last week as the amalgamation of three companies - Wyeth Labs, Wyeth India and John Wyeth - with it was announced last week.

The company, which is to be renamed as Wyeth Lederle, will benefit from the wider product range as Wyeth has a strong presence in steroids, female health products and antibiotics and Cynamid is into anti-filarials, anti-cancer and anti-acne products.

The shareholders of Wyeth Labs will get three shares of Cynamid for every two shares held. The agro business of Cynamid will be hived off into a separate company . The new company will be called Cynamid Agro and Cynamid shareholders will get shares of this company in the ratio of one share for every share held.

 

The move will see a consolidation of American Home Products Corporation and will have a stake of about 51 per cent in the merged entity.