US co Mylan seen closing in on deal with Matrix Labs

US-based generic firm Mylan Laboratories is believed to be close to picking up a controlling stake in Matrix Laboratories. Sources said Mylan has completed its due diligence and that price negotiations with Matrix promoters seem to have reached a final stage. It has been reliably learnt that Matrix promoter N Prasad is likely to keep a minority stake in the company and continue on the board.

However, there seem to be differences on the pricing. While the promoters want Rs 350 per share, Mylan’s learnt to be offering between Rs 320 and Rs 340 per share. Shares of Maxtrix have jumped by 24% in the past one-and-half months. On Friday, the Matrix stock surged 9% and touched an intra-day high of Rs 284, before closing at Rs 280 a share.

Foreign funds, Newbridge and Temasek jointly hold 38.14% in Matrix, while the promoters own 16.7% stake as of March ‘06. Both Mr Prasad and CEO Rajiv Malik were not available for comment as they were travelling to the US. When contacted, GS Muralidharan, COO, declined to comment.

Interestingly, there have been indications that Mr Prasad is getting into other businesses. He recently bought a majority stake in Maa TV, a leading Telugu television channel and also invested about Rs 45 crore in Hyderabad’s Care Hospital.