i Develop Stocks Advisory

Orchid looking at options to ward off threat Ranbaxy-backed financial investment firm Solrex’s game plan in acquiring Orchid Chemicals & Pharmaceuticals Ltd may become clearer when the markets open on Tuesday. While all the parties involved are tight lipped over their next move, sources said that Orchid’s management is weighing different options to ward off any takeover bid by Ranbaxy, after Solrex increased its stake to close to 12 per cent. This is close to the 15-per cent mark, which is the trigger point for an open offer. While Ranbaxy’s management has denied a hostile takeover bid on Orchid, sources indicate that the status could change over the next few days. Orchid Pharmaceuticals promoter Kailasam Raghavendra Rao on the other hand is garnering support, including alliances with other pharma companies, to keep out Ranbaxy. The takeover bid will also depend on other financial investors in Orchid. Major investors include Gazal Industrial Holdings (8.48 per cent), Macquarie Bank (5.13 per cent), Life Insurance Corporation of India (7.8 per cent), United India Insurance Company (2.48 per cent), Harpline (4.54 per cent) and Fidelity Trustee Company (2.66 per cent). Also, the founders of Orchid have the option to convert 5 million warrants to 7.6 per cent of additional equity