Tue Dec 24, 2013 2:37am EST
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<span id="midArticle_0"/>JOHANNESBURG Dec 24 (Reuters) - South Africa's state pension fund has increased its stake in drugmaker Adcock Ingram to over 22 percent, putting the fund closer to being able to single-handedly block a $1.2 billion Chilean takeover bid.
<span id="midArticle_1"/>The state-owned Public Investment Corporation (PIC) has raised its Adcock holding to 22.373 percent, Adcock said in a regulatory filing on Tuesday. The fund previously owned around 19 percent of South Africa's second-largest drugs company.
<span id="midArticle_2"/>Santiago-based CFR Pharmaceuticals has bid 12.8 billion rand ($1.24 billion) in cash and shares for Adcock, an offer that requires approval from shareholders holding 75 percent of Adcock.
<span id="midArticle_3"/>The deal is almost certain to fail given the combined opposition from the PIC - which has said it does not want CFR shares - and local firm Bidvest, which has built up its Adcock stake to around 7 percent.
<span id="midArticle_4"/>Looking to derail the CFR deal, Bidvest has gone straight to Adcock shareholders with an all-cash bid for more than a third of the company.
<span id="midArticle_5"/>Shareholders are due to vote on the deal some time next month.
<span id="midArticle_6"/>Shares of Adcock were down 1 percent at 71.01 rand, closer to Bidvest's offer price of 70 rand than CFR's offer of 74.50 rand. ($1 = 10.3098 South African rand) (Reporting by David Dolan; Editing by Ed Stoddard)
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<span id="articleText"/>(Adds details, background)
<span id="midArticle_0"/>JOHANNESBURG Dec 24 (Reuters) - South Africa's state pension fund has increased its stake in drugmaker Adcock Ingram to over 22 percent, putting the fund closer to being able to single-handedly block a $1.2 billion Chilean takeover bid.
<span id="midArticle_1"/>The state-owned Public Investment Corporation (PIC) has raised its Adcock holding to 22.373 percent, Adcock said in a regulatory filing on Tuesday. The fund previously owned around 19 percent of South Africa's second-largest drugs company.
<span id="midArticle_2"/>Santiago-based CFR Pharmaceuticals has bid 12.8 billion rand ($1.24 billion) in cash and shares for Adcock, an offer that requires approval from shareholders holding 75 percent of Adcock.
<span id="midArticle_3"/>The deal is almost certain to fail given the combined opposition from the PIC - which has said it does not want CFR shares - and local firm Bidvest, which has built up its Adcock stake to around 7 percent.
<span id="midArticle_4"/>Looking to derail the CFR deal, Bidvest has gone straight to Adcock shareholders with an all-cash bid for more than a third of the company.
<span id="midArticle_5"/>Shareholders are due to vote on the deal some time next month.
<span id="midArticle_6"/>Shares of Adcock were down 1 percent at 71.01 rand, closer to Bidvest's offer price of 70 rand than CFR's offer of 74.50 rand. ($1 = 10.3098 South African rand) (Reporting by David Dolan; Editing by Ed Stoddard)
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