Fortis stock slumps 2% after IHH flags logjam

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Fortis Healthcare declined for the second straight day on Monday after Malaysia’s IHH Healthcare said Fortis has declined to engage with the company on a takeover offer citing binding agreements with other parties.

The scrip was trading 1.94 per cent down at Rs 149 at around 11.05 am (IST). It opened at Rs 151.40 and touched high and low of Rs 152.20 and Rs 147.05, respectively, so far. Benchmark Sensex was down 85 points, or 0.25 per cent, at 34,107 at around the same time.

IHH, one of Asia’s largest healthcare operators, had bid Rs 160 per share to buy Fortis last week, topping a Rs 155 per share offer from Fortis rival Manipal Healthcare Enterprises Private.

On Monday, the Malaysian firm said the Fortis board sent it a response letter indicating that it was unable to engage with IHH due to binding agreements with Manipal Health Enterprises Private, Manipal Global Health Services and TPG Asia, according to Reuters.

Fortis Healthcare had scaled 52-week high of Rs 230.90 on May 3, 2017, and 52-week low of Rs 106.65 on February 6 this year.

Source: Economic Times