Abbott/Knoll merger: Pakistan repercussion

The merger of Abbott Laboratories and the pharmaceutical business ofGermany's BASF, including the global operations of its Knoll unit (Marketletter March 12), has had repercussions in Pakistan, according to Jurgen Konig, chief executive of Knoll Pharmaceuticals in that country. He said the local subsidiary would naturally be acquired by Abbott, but that this would be after all Pakistani statutory requirements for such mergers and acquisitions are completed. Mr Konig added that the "transaction is an excellent strategic fit between the partners because of geographic complementarity and product portfolio synergies."

However, the Marketletter's local sources point out an interesting speculation for shareholders in Pakistan. A 10 rupee ($0.16) share in Abbott is currently trading at 47 rupees and one in Knoll at 63 rupees; the total number of outstanding shares is similar for the firms, with 24.5 million for Abbott and 23 million for Knoll.