Elder Pharma back on the buzz

Elder Pharma is back on the buzz and the same old buzz too – acquisition of domestic business of the company. The stock is up currently over 4% at Rs.310.40, hitting an intra day high at Rs.317. Volumes are also on the rise.

The news is that Torrent Pharma is very close to striking a deal with Elder for taking over its domestic business and it is said to have offered around Rs.1700 crore for the same. A few days ago, the buzz was that French company Sanofi was close to acquiring this business and it had then worked out a deal for Rs.2400 crore. Thus many names have been doing the buzz and till a clearer picture does not emerge, the stock will continue to rise on this speculation. Yet, what remains certain is that its domestic business is up for sale and the money coming in will be first used to reduce the huge pile of debt, around Rs.1400 crore.