Pfizer made 52-week high on announcement, on news that it is to merge with wyeth for creating single Pfizer brand, to expand across multiple therapeutic categories
Pfizer India Ltd (Pfizer) and Wyeth India Ltd (Wyeth), said their board of directors in their respective meetings on Monday, approved a proposal to merge Wyeth with Pfizer.
Based on the proposed merger swap ratio, Pfizer will issue around 1.59 crore new equity shares to Wyeth shareholders, as consideration for the merger. The shareholders of Wyeth will get seven shares of Pfizer for every ten shares of the company (Wyeth).
“The combined entity would have an increased therapeutic presence and a de-risked business profile. The merger process would require several approvals and we anticipate this will take approximately another nine months,” said Aijaz Tobaccowalla, managing director, Pfizer and Wyeth.
Pfizer and Wyeth are going to merge for creating a single Pfizer brand. It will help company to strengthen the India operations through expansion across multiple therapeutic categories, unifies management focus and combines the talent pool, Increases long-term value for all stakeholders.
Pharmaceuticals companies Pfizer and Wyeth have also announced an interim dividend of Rs360 per share and Rs145 per share respectively.
The merger process is expected to be completed in over next nine months after getting the key approvals from shareholders of Pfizer and Wyeth. Approvals from SEBI, stock exchanges, Foreign Investment Promotion Board (FIPB), Jurisdictional High Court of Bombay are required for the merger as well.
On Monday, Pfizer hits its 52-week high at Rs1,648 before closing 12.14% up at Rs1,605 while Wyeth ended the day 13.6% higher at Rs924.80 on BSE. The BSE 30-share benchmark closed 387 points up at 20,605.
As suggested on Friday, bulls trampled over tired bears, with the news on the Iran nuclear deal, helping the bulls’ case in a big way
On Friday, we had written that “Nifty will try to rally on Monday as bears seem to be tiring out”. Sensex and Nifty rallied today, without any semblance of fight from the bears mainly because of very positive international news that Iran and US has reached a nuclear deal to restrict Iran’s nuclear ambitions. Policy makers view this as a positive sign of diffusing the otherwise volatile Middle-East region, with less probability of nuclear confrontation. Trade sanctions were also eased, enabling Iran to transact with the world, including India. The deal includes relaxed restrictions on cars, petrochemicals, aviation parts, gold, and insurance for oil cargoes. In addition, it will let the Persian Gulf state continue exporting oil at current levels instead of forcing further reductions.
Both oil and gold fell on the news. Nymex crude oil futures tumbled nearly 1.5% to $93.52 a barrel at time of writing this piece, the biggest decline in three weeks. Gold fell to a four month low of $1,232/ounce.
The market maintained strength throughout the day, getting stronger towards the second half of the trading session. The Sensex opened at 20,326 (incidentally also the intra-day low) and maintained a strong position for most of the day. Sensex hit the intra-day high of 20,626 before closing at 20,605 (up 387.69 points or 1.92%). Nifty opened at 6,035 (also Nifty’s day low), hit a high of 6,123 before closing at 6,115 (up 119.90 points, or 2%). Volumes were not strong, with 52.83 lakh shares being traded.
All the indices were in the green except for CNX IT which was marginally down by 0.02%. Banks and financial services finished strong, with Bank Nifty up 3.80%, CNX finance up 3.50% and CNX PSU Bank up 3.77%.
Of the 50 stocks on the Nifty, 46 advanced and remaining four declined. The top gainers were BHEL (5.43%); ICICI Bank (5.22%); BPCL (4.39%); Kotak Bank (4.20%) and State Bank of India (4.14%). The top losers were NTPC (-0.70%); Infosys (-0.50%); Lupin (-0.10%).
Of the 1,456 shares on the NSE, 864 closed in the positive, 491 closed in the negative while 101 remained unchanged.
Asian markets were surprisingly mixed, with mainly Sensex and Nikkei strong. The Yen weakened against the dollar, pushing up Nikkei 1.54%. Hang Seng and Shanghai both closed down marginally.
American stock futures were seen trending up. All European markets were seen trending up as well, with both France and Germany’s DAX being strong, moving up nearly a percent, as many companies from the region import from Iran.
CBI had registered a case against Acharya, the deputy MD of SBI as well as KK Kumarah, former additional general manager at SBI and Piyoosh Goyal, chairman of Worlds Window Group for alleged graft in disbursing loan of above Rs100 crore
State Bank of India (SBI), the country's largest lender said it has asked one of its deputy managing directors, Shyamal Acharya to go on leave and also constituted an internal panel for probing the graft charges against him. The Central Bureau of Investigation (CBI) raided Acharya's residence in a case of alleged graft in disbursing loan of above Rs100 crore.
In a statement, SBI said, “We have been informed by the CBI that Shyamal Acharya, deputy managing director and group executive (mid corporate groups) of our bank, is being investigated. Acharya has been asked to proceed on leave.”
“We have also constituted an internal committee comprising two senior managing directors to investigate internally,” the statement said.
Yesterday, the CBI registered a case against Acharya as well as KK Kumarah, former additional general manager at SBI and Piyoosh Goyal, chairman of Worlds Window Group for alleged graft in disbursing loan of above Rs100 crore.
According to the CBI, a team of its economic offences wing (EOW) in Mumbai has registered a case against them for alleged graft.
The agency sources said Goyal wanted a loan of over Rs100 crore from SBI for his firm when Kumarah got involved. They said Kumarah assured him of his contacts in the bank through which he could get that loan passed.
Sources said an arrangement was reached between Kumarah and Goyal under which he had to get Rs25 lakh for his services and Rs15 lakh for Acharya.
Kumarah allegedly purchased two high-end Rolex watches worth about Rs8 lakh to be given to Acharya for his alleged favours. Meanwhile, the CBI came to know about this deal and laid a trap.
Kumarah, who was coming out from the residence of Acharya after allegedly giving him watches, was nabbed by the CBI team.
The remaining cash of around Rs7 lakh was also recovered from him, the sources claimed.
The CBI teams carried out searches at the residences of Acharya, Kumarah and Goyal in Mumbai and Kolkata.
SBI said it stands committed to probity in its dealings and assured that it will continue to hold highest standards of honesty and transparency in its operations. The statement also said the bank is cooperating with the investigating agency in the probe.