Link and extract from press release below....
Can anyone shed any light on the article? It looks like old news to me......but it is dated on Friday just gone...!!
http://www.prlog.org/11511064-australian-ventures-the-pharmaceutical-industry.html
FOR IMMEDIATE RELEASE
PRLog (Press Release) ? May 27, 2011 ? Durban-based Aspen Pharmacare said on Friday last week that it would acquire troubled Australian drug maker Sigma Pharmaceuticals for $570-million to bolster its presence in the fast-growing generic drug market. Sigma, the largest player in Australia?s generic drug industry, has recently been plagued with difficulty after the resignations of three top executives following a record loss in March, triggering a plunge in the stock price, which halved in a single day. . Aspen, Africa?s largest pharmaceutical firm, is one of the world?s top 20 manufacturers of generic drugs and has had a presence in Australia since 2001. Aspen, however, said this week that it would lower its takeover offer for Melbourne-based Sigma Pharmaceuticals after completing a review of the Australian drug distributor?s accounts. A reduced bid also followed talks with Sigma management on the business. Sigma shares have remained below Aspen?s indicative offer of A$0.60 per share, which includes Aspen taking over Sigma?s net debt of A$785-million. From Aspen?s point of view, the situation is fraught with danger. On the one hand it might be picking up a bargain. But on the other hand, it might become the next South African company that takes over a loss-making business, which then stubbornly continues making a loss. Even at the indicative price, Aspen will be paying less than the company?s debt, which suggests either that they are getting a very good price or that the company had too much debt on its balance sheet in the first place.
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