Goldshield bidding war escalates with 480p offer from AIT and former exec

AIT Investments, a consortium led Israel's Fuhrer family, and UK-based generic pharmaceutical and consumer health care company Goldshield's former chief executive Ajit Patel, have upped their offer for Goldshield to 176.8 million ($280.2 million) sending the latter's share price up 4.7% by close of trading on October 2.

The 480 pence-a-share bid bettered AIT's initial approach (The Pharma Letter September 14 and 19) and follows other offers for Goldshield. Last month, AIT bid 440p a share (then a premium of 36% on Goldshiled's share price), before increasing it to 450 pence amid speculation that a rival approach would be made by the group's existing management team, led by chief executive Rakesh Patel in collaboration with Midas Bidco, an arm of buyout specialist Hg Capital, who later made an offer of 460 pence a share.

The price of 480 pence in cash for each share (an increase of 30 pence per share or around 6.7% compared to the September 23 proposals) represents: a premium of approximately 48.4% to the price of 323.5 pence on 23 June 23, 2009, the day before the announcement by Goldshield that it had received approaches concerning a possible offer.