* Adcock says offer lapsed on Tuesday
* Bidvest bid likely to turn hostile
(Adds details, analyst comment)
JOHANNESBURG, April 4 South Africa's Adcock
Ingram will no longer entertain Bidvest's $675 million
takeover bid, it said on Thursday, paving way for the
conglomerate to go hostile by canvassing the drug maker's
Bidvest had given the nation's second largest drug
maker until Tuesday to co-operate but Adcock snubbed the bid,
calling it "opportunistic" and lacking the details the board
needed to assess its merits.
"Given that the Bidvest-imposed deadline has passed, the
Adcock board does not currently have a firm offer to consider,"
chairman Khotso Mokhele said in a statement.
The bid looks likely to turn hostile after Bidvest said
earlier this week Adcock shareholders should be given a chance
to vote on the offer.
"Adcock seems to be playing by the book and it also looks
like it is trying to buy time to convince its shareholders that
it can deliver on its strategic plans," one analyst, who
declined to be named, said.
"But at end of the day, an offer is an offer and some
shareholders are not looking at the technicalities but at how
much is being offered."
Adcock has underperformed rivals both operationally and in
stock market terms in recent years, but it has said investments
in factories, acquisitions and distribution partnerships with
global drugmakers have teed it up well for growth.
Sometimes called "the General Electric of South Africa",
Bidvest has a reputation of buying underperforming assets that
can benefit from its vast distribution network and customer
However, going hostile is uncharted territory. Of 18
previous takeovers stretching back to 1999, all have been
friendly, according to Thomson Reuters data.
(Reporting by Tiisetso Motsoeneng; Editing by Ed Cropley)