Cipla Ltd. gained the most in four months in Mumbai trading after the Mint newspaper reported that Teva Pharmaceutical Industries Ltd. is courting the Indian drugmaker with an offer of as much as $6 billion.
Cipla rose as much as 3.2 percent to 395 rupees, headed for the biggest gain since Jan. 8, before trading at 388.95 rupees at 12:55 p.m. in Mumbai. Israel-based Teva had two earlier approaches rejected, the publication said, citing people it didn’t name.
Teva, the world’s largest generics maker, is seeking to bolster growth through deals and as much as $2 billion in cost cuts. The purchase would give Teva access to Cipla’s manufacturing base in India, its emerging markets presence, and its global share of the market for respiratory drugs, the publication reported, citing an unnamed consultant.
The newspaper’s report is “purely baseless and speculative in nature,” Cipla said in an e-mailed statement. “We have consistently denied such rumors in the past and continue to do so.”
Teva made its latest offer in November and it may potentially seek to buy as much as 56.8 percent of Cipla, the publication cited an unnamed merchant banker as saying.
“The claim in the news item of an offer made in November is incorrect and no such formal offer was received by the Cipla board,” the Indian company said in a stock exchange statement.
Mint said Teva’s spokeswoman Denise Bradley declined to comment on the report. Teva via text message today said it doesn’t respond to market rumors.
Global pharmaceutical companies have announced a string of deals this year as companies from GlaxoSmithKline Plc to Novartis AG have sought to streamline businesses as many blockbuster drugs face patent expirations. India’s Sun Pharmaceutical Industries Ltd. in April agreed to buy smaller competitor Ranbaxy Laboratories Ltd. for $3.2 billion.
Cipla’s stock was the biggest percentage gainer on India’s S&P BSE Sensex Index today.
— With assistance by Daryl Loo, and Ketaki Gokhale