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With the consortium ceiling gone, Adcock shares sink

Adcock Ingram shares lost nearly 7 percent yesterday, the Bidvest and CIH consortium comfortably overpaid for their 34.5 percent stake, but they needed to pay top Dollar to get the shares. The realisation that the Chileans are gone set in, another big volume day. Nothing like last week however, where 39 million shares traded on Thursday. The clincher for Bidvest/CIH. 621 thousand shares traded yesterday, big by ordinary standards. With 175 million shares in issue for Adcock (and some change) it will be interesting to see how liquidity will dry up as the gorilla shareholders decide what to do with management and strategy now. The way I count it, the PIC has 22.37 percent of the shares outstanding, Bidvest/CIH have 34.5 percent and Foord owns 15.02 percent, only 28 percent of the shares belong to other shareholders. Wow. There is no Bidvest/CIH underpin anymore at 70 Rand, the reality of the poor trading update has meant that the price is lower.


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