News: SIG UPDATE 1-Sigma Healthcare drops pursuit of Australian pharmacy chain API

(Adds background on Wesfarmers play for API)

Nov 5 (Reuters) - Sigma Healthcare (SIG) said on Friday it dropped its takeover bid for Australian Pharmaceutical Industries (API) , nearly a month after retail conglomerate Wesfarmers Ltd (WES) picked up a large stake in its own pursuit of the pharmacy chain.

Sigma, which also runs pharmacies and other medical services, said it was scrapping its A$773 million ($572.02 million) proposal in the face of a "competitive bid process".

Wesfarmers in October defended its approach by picking up https://www.reuters.com/article/api-m-a-wesfarmers-idUSKBN2GW2EC the entire stake held by API's largest shareholder, a move that made it potentially more challenging for Sigma to secure enough votes for its bid.

"After further assessment, and in the context of the competitive bid process with its changing transaction and economic considerations, Sigma has made the decision not to proceed with this current proposal," Sigma Chairman Ray Gunston said.

Sigma had made a cash-plus-stock bid of A$1.57 per share to rival Wesfarmers' A$1.55 a share cash offer.

($1 = 1.3514 Australian dollars)