India's Piramal Healthcare Ltd denied Thursday that it was up for sale after its shares rocketed on a report that a deal could be near. The Economic Times reported earlier in the day that French drug giant Sanofi-Aventis had emerged as front-runner to buy a “substantial stake” in Piramal and was willing to pay a hefty premium to its share price. But the generic drugmaker issued a statement as financial markets closed saying “the promoter (owner) has no intention to dilute current ownership levels”. It noted that it had “earlier denied unfounded market rumours”. The Economic Times reported that Sanofi-Aventis SA had completed due diligence on the accounts of the drugmaker, citing unnamed people it said were “close to the development”. A deal in which Sanofi-Aventis would purchase a “substantial stake” in Piramal Healthcare Ltd at a more than 50 percent premium to its current share price could be closed “soon”, the business newspaper said. Piramal's share price rocketed on the report, closing up 16.93 percent or 30.25 rupees at 208.90 rupees. “The possible acquisition is a mere speculation and therefore we cannot comment on it,” a Sanofi-Aventis India spokeswoman told the newspaper. Earlier this month, Britain's GlaxoSmithKline, the world's second-biggest drugmaker, was also mentioned as a suitor for Piramal, India's fourth-largest drug company. At that time, media reports cited a possible price tag of $1.5 billion for the company, which has a market capitalisation of about $830 million. At the end of December 2008, the Piramal family, owners of the company, held a 49.55 percent stake in the firm, the Economic Times said. Piramal Healthcare posted consolidated revenues of $718 million in in the 2008 financial year, the company said in a statement.
