Wizard Of Sandoz Gets Ciba Moving

Previous weeks close: Rs 2415

The Hind Ciba Geigy (HCG) scrip zoomed up last week, gaining 17 per cent on the announcement that Sandoz (India) is to be merged with the life sciences business of HCG. Thus, the Sandoz shareholders would get 10 equity shares of Rs 10 of HCG (to be renamed Novartis India) each for every 17 shares of Sandoz India. Also, the shareholders of Ciba will receive one share of Rs 10 each in the new specialty company for every two shares of Sandoz. The specialty chemicals business of HCG is to be demerged into a separate company. HCG shares which have a face value will be sub-divided into shares of Rs 10 each.