Merck, Ranbaxy call off research pact
US drug maker Merck & Co has called off its two-year-old research alliance with Ranbaxy. The development had no immediate financial implications, as payments to Ranbaxy were linked to successful completion of drug development targets over a period of five years. Conflict of interest between Merck and Daiichi Sankyo, that holds majority stake in Ranbaxy, could have triggered the decision.
But, unconfirmed reports suggest that the research contract could have moved from Ranbaxy to Aurigene, a drug research company, promoted by Ranbaxy"s local rival Dr Reddy"s Laboratories. The strategic product development agreement between Merck and Ranbaxy, signed in May 2008, was expected to result in the discovery of new anti-infective medicines.
Fame battle: ADAG closes gap with INOX
The battle for Fame, a leading multiplex chain, has reached the last leg with the Reliance Anil Dhirubhai Ambani Group (RADAG) closing the gap with INOX on shareholding. Reliance MediaWorks acquiring 32 percent stake of the company's fully-diluted equity. Reliance MediaWorks already holds 12 percent stake in the Mumbai-based multiplex company, which is the middle of an intense takeover battle between the ADAG Group and INOX. Fully diluted equity is the additional shares, which will be added to Fame India"s current equity base post conversion of FCCB"s worth Rs 60 crore. The conversion price is Rs 107 per share.
Inox had a stake of 50.27 percent stake in Fame while it had applied for an open offer for 20.25 percent stake of the Emerging Equity. On the other hand, Reliance MediaWorks offer was for around 53 percent stake of the emerging equity. Inox had bought Fame India promoters' 43 percent stake for Rs 44 share and subsequently purchased another 7 percent stake at Rs 51 a share before launching the mandatory 20 percent open offer at the same price. Reliance MediaWorks offered Rs 83.4 per share in the open offer. So, with additional 32 percent stake, Reliance MediaWorks" overall stake would be 44 percent. Fame had issued FCCBs worth Rs 60 crore and at time of change in the management control, the holders can convert the bonds into equity shares. This would mean about 6.2 crore of additional shares or about 15 percent of equity of Fame would be listed.
RIL abandons exploratory well in K-G basin
Reliance Industries has abandoned the second exploratory well in a Krishna-Godavari block after encountering "disappointing" results. Even though this exploration result is disappointing, the presence of thick reservoir quality sands and the potential presence of a petroleum system are encouraging. We will now work with our partner to incorporate the data gathered to update the geological model.
Reliance has 90 percent interest in D9 block while the remaining 10 percent is with Hardy. The well was drilled to a total depth of 3,829 meters. The well encountered two tertiary aged reservoir quality sand packages of 70 and 40 metres gross thickness respectively, in which gas shows ranging from 6-9 percent were recorded. Testing was carried out with the MDT tool which suggests water gradient in the sand packages. The well has been plugged and abandoned.
(An article by DAS CAPITAL MANAGEMENT AND ADVISORS Pvt Ltd)