Thursday, June 12, 2008

How Ranbaxy acquisition will affect the stock holders

Now that daiichi sankyo has acquired stake in ranbaxy, there is bound to be change in investor holdings and their profits. To acquire control daiichi needs 51 % stake in company

1. Daiichi buys 35% from singh family. Another 65% is with the preferred and common stock holders.

2. Daiichi can 9.4% in ranbaxy through preferred allotment of shares

3. Daiichi can offer to buy 20% of 65% shares in market.

4. If daiichi still cannot reach 51% , it will get offer to buy another 4.9 % through preferred allotment

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