Fortis battle heats up

Clearly, Fortis is the company in the spotlight today on Dalal Street in the morning trades. The opening bell saw the stock price rise almost 3% to Rs.158 and within minutes it saw profit booking at that level is now just about holding on to the green at Rs.154.

The battle for takeover heated up as Sunil Munjal-owned Hero Enterprise Investment and the Burmans of Dabur India have joined hands to bid for Fortis Healthcare Ltd (FHL), offering Rs.1,250 crore.

Munjals and Burmans are already shareholders in FHIL, holding around 3%. They have jointly sought to invest more through the preferential allotment route.

Rs.500 crore is to be invested immediately and balance Rs.750 crore will be invested in three weeks, post diligence.

The allotment and pricing would be in accordance with SEBI guidelines for preferential shares or ?156 per share, whichever is higher.

FHIL already has two rival offers from Manipal Health Enterprise Pvt Ltd. and IHH Healthcare Bhd. for its hospitals and diagnostics businesses.