Sigma Pharma tells suitor Aspen it wants a higher takeover offer

Following last week's decision by South Africa's largest drugmaker Aspen Pharmacare to reduce its previously-announced non-binding takeover offer for Australia's Sigma Pharmaceuticals, the latter has said it wants Aspen to improve its bid, according to various media reports.

After due diligence and evaluation of its original A$0.60 per share offer, Aspen dropped this to A$0.55, along with a string of conditions ' cutting its bid by 8.3% to A$ 648 million ($567 million; The Pharma Letters May 24 and July 7). Aspen is about 19% owned by UK drugs giant GlaxoSmithKline. According to the Bloomberg news service, Sigma is willing to work with Aspen to help remove some conditions of the A$0.55 offer, but 'talks do not mean Sigma will recommend the bid to shareholders and Aspen's exclusive right to negotiate an agreement has not been extended.

Asset sale under consideration