OFT raises the stakes in Lloyds takeover battle

Article Abstract:

The UK Office of Fair Trading (OFT) is to refer retail prices for non-prescription drugs to the restrictive practices court. This could mean price competition among retailers, though no action is likely to be taken until 1998. The acquisition of Lloyds Chemists by Unichem would create a company with critical mass in addition to reducing costs through economies of scale in buying drugs. Gehe may also make a bid for Lloyds, which could lead Unichem to increase its offer.

Pharmaceutical Preparation Manufacturing, Pharmaceutical preparations, Proprietary Preparations, Laws, regulations and rules, Pharmaceutical industry, Proprietary drugs

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Llods: Unichem's remedy

Article Abstract:

Unichem is acquiring Lloyds Chemist through an agreed bid for 514 million pounds sterling. If the deal goes through, Unichem aims to use its own Moss brand to replace the Lloyds Chemists brand. The deal would boost both Unichem's retail and its wholesale operations. Another company may make a rival offer, and there has been speculation that Gehe, a chemicals supplier from Germany, could do this. Unichem could increase its offer if a rival bid emerges.

Drug Store Chains, Chain stores

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UniChem in spotlight

Article Abstract:

UniChem is seeking to acquire Lloyds Chemists and is competing with Gehe for this acquisition. UniChem saw a rise in its share price on Feb 21 1996, and this is being examined by the UK Takeover Panel to ensure that share price manipulation has not occurred. UniChem acquired a stake of almost 10% in Lloyds as a result of the rise in UniChem's share price. Purchases by institutional investors could have led to the share price rise for UniChem.

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