Fortis Healthcare deep in red

Fortis has been the top loser on the BSE since the opening bell and it continues to stay there. The stock once breached the LC at Rs.178.20 but is now at Rs.176 levels, down over 11%.

This huge fall today is on account of the rumoured deal with Integrated Healthcare Holdings (IHH) of Malaysia being just that – a rumour.

IHH clarified loud and clear today that it is not, nor is it close to, concluding any negotiations or due diligence or transactions in India at this point in time. There was talk, on account of which the stock had zoomed into the stratosphere that its promoters were at an “advanced stage of talks” with IHH and the market was in fact expecting a formal announcement any time soon.

The grapevine says that IHH decided to call off the deal as they were worried about the ongoing legal battle with Daichhi Sankyo and were wary as they felt it puts the entire ownership of Fortis under a cloud.

taken a strategic call to pull out of the exclusive discussions with the Singh brothers.