Takeover battle looms for Fortis

May 28, 2010 - Age Correspondent |

New Delhi

It looks like the duo of Malvinder Singh and Shivinder Singh have a fight on their hands for the control of Singapore-based hospital firm Parkway Holdings.
Fortis, the hospital chain promoted by the duo, had acquired a 25.3 per cent stake in Parkway in March. Now their hold is being challenged by Khazanah Nasional, the M

alaysian state investment firm. Khazanah has made an open offer that will take its stake from 23 per cent now to 51.5 per cent — at a cost of $839 million.
Fortis refused to comment on whether it would fight back with a counter offer. Analysts are divided in their views on whether Fortis will slug it out or sell out. “It doesn’t look like the Singh family will like to give up their control of Parkway and they are likely to fight back with a better counter offer,” said Mr Sujay Shetty, who heads PricewaterhouseCoopers’ pharma practice in India.
Meanwhile, Mr Jaganna-dham Thunuguntla of SMC Capitals said that market expect Fortis to cash out its stake in Parkway. The shares of Fortis rose by 7.5 per cent on the BSE on Tuesday. This could mean the market’s view is that they may choose to sell out.

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