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Fortis Healthcare shares plunge after report that sale to IHH put on hold
SHARES of India's Fortis Healthcare Ltd posted its biggest intraday fall in over 81/2 months on Friday after a CNBC TV18 report said that the country's top court put its sale to Malaysia's IHH Healthcare on hold.
Shares fell as much as 14.3 per cent to 130 rupees (S$2.49), their lowest since Oct 30, in a heavy trading session where more than 15.9 million shares were traded by 0704 GMT, compared to their 30-day average of about two million shares.
Cash-strapped Fortis, which operates about 30 private hospitals in India, accepted an investment offer from IHH in July after an extended bidding war for control of the company.
Japanese pharmaceutical firm Daiichi Sankyo Co Ltd had moved to Supreme Court filing a contempt plea against Malvinder and Shivinder Singh, alleging that they created encumbrances on 1.2 million shares of Fortis in violation of court orders, the CNBC TV18 report added.
The court also issued notices to founders the Singh brothers, who are under probe by the market regulator for allegedly siphoning funds from the hospital operator, the report said.
The brothers have denied the allegations. REUTERS