http://www.smh.com.au/business/sigma-takeover-speculation-heats-u...

http://www.smh.com.au/business/sigma-takeover-speculation-heats-up-20100812-120ko.html



Sigma takeover speculation heats up ELI GREENBLAT
August 12, 2010 - 12:36PM
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Speculation is running through the market today that South Africa's Aspen Pharmacare has made an unconditional takeover bid for Sigma Pharmaceuticals of 65 cents a share, an improvement on the 55 cents per share offer made last month.

It is believed Aspen have tired of the lengthy due diligence and negotiation process with the Sigma board and are keen to force out a decision from directors and put the offer to long suffering shareholders.

It is believed the board is currently considering its options.

Advertisement: Story continues belowThe speculated new offer of 65 cents per share values Sigma at $765 million and is up from the previous indicative offer from Aspen of $648.2 million. Analysts had suspected for some time that the offer could be increased after Aspen's initial bid of 60 cents was lowered to 55 cents in July. The deal would give Aspen the entire company, including some of the assets slated for sale.

Shares in Sigma are currently trading at 44 cents, and have lost more than 60 per cent of their value this year following its shock profit downgrade and hundreds of millions of dollars in asset write-offs.

More to come

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