PE firms may not support Ranbaxy’s bid for Merck’s generics business

In a major setback to Ranbaxy Laboratories’ bid attempt for Merck’s generics business unit, private equity firms have stated that they do not want fund Ranbaxy's offer as the Indian drug maker does not want to give them an equity stake. Ranbaxy may offer equity only in a special purpose vehicle rather than in itself if it wins the bid. First round non-binding offers for the business, which is expected to fetch at least €4 bn ($5.2 bn), are due by Monday. Iceland's Actavis and Ranbaxy have both said they want to acquire the business.

Meanwhile, the other Indian pharma companies in the race for the Merck bid, Dr. Reddy’s and Cipla, have opted out. Several global majors like Novartis, Teva, Actavis and private equity group Carlyle are said to be interested in the bidding.

Article in Reuters.com and DNA Money.
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