Mangalore Chem stake buzz
After Deepak Fertilisers & Petrochemicals acquired a 24.46-per cent stake in Mangalore Chemicals and Fertilisers (MCF) last week, market is abuzz with speculation of a hostile takeover. In April, Zuari Fertilisers had bought 10 per cent stake in MCF. Currently, Mallya-controlled UB Group holds 22 per cent stake, of which 57 per cent is being pledged with the financial institutions. Though the management does not fear bidding war or hostile takeover, market participants feel anything could happen, if lenders dilute their stake. In fact, last Friday, one of its lenders SBI sold 7.07 lakh shares at Rs 55.02 apiece through bulk deal. However, the buyer was not known immediately.
The stock of Gillette India may suffer this week after SEBI froze voting rights and the right to corporate benefits (dividend, rights, bonus, share splits, and the like) of Gillette promoters and the promoter group. SEBI took the extreme action as the company failed to meet the minimum public shareholding of 25 per cent by June 3 deadline. SEBI also prohibited Gillette promoters, promoter group and directors from buying and selling and dealing in securities. They have also been barred from taking up the position of director in other companies, pending compliance. SEBI said it reserved its right to levy a fine, prosecute, move the scrip to trade-to-trade segment and exclude the scrip from the F&O segment. It will be interesting to see how the company is going to comply with minimum public shareholding norm or will it tap delisting door?
FDA order likely to sicken Fresenius Kabi
FreseniusKabi Oncology shares are likely to come under pressure this week after the company said that it had received a warning letter from the US Food and Drug Administration asking for more information and implementation of additional corrective and preventive measures regarding GMP non-conformities. The company claims that since the USFDA made observations on February 26 it had immediately taken steps to implement remedial measures and had voluntarily put the production on hold. Its German promoter said: “The company takes this matter very seriously and intends to comprehensively respond in a timely manner to the warning letter. Fresenius Kabi fully confirms its 2013 guidance which includes expected one-time charges to remediate the issues.”