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R13bn Adcock deal faces threat

Johannesburg - Chile's CFR on Monday threatened to pull out its R13.48bn (at Monday's rand/dollar exchange rate) deal to buy drug maker Adcock Ingram if it does not win support from the state pension fund that ranks as Adcock's biggest shareholder.

"This not something you invest every weekend but I stress the point, it is very important to have the government support," Alejandro Weinstein, CFR Pharmaceutical's chief executive, told a conference call.

"If we don't have the support of the PIC (Public Investment Corporation), and what I mean by the PIC I mean the government, it is something that may make us look for alternatives for our investment in other emerging markets," he said.

Santiago-based CFR offered Adcock $1.3bn (R13bn) in cash and shares, a bid Adcock rejected in "its current form".

The PIC, which manages more than R1trn in government employee pensions, did not elaborate.

The PIC owns 14% of Adcock, according to Thomson Reuters data, but it stake is closer to 20% if funds under the custody of external managers are included.

Shares in Adcock were down 0.7% at R67.62, lagging behind a slightly higher JSE All Share index
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