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RBS says bid for Omega Pharma seems very likely.

(SeeNews) - Jul 12, 2011 - A takeover bid for Belgian pharmaceutical company Omega Pharma NV (EBR:OME) seems increasingly likely, according to analyst Wim Gille at RBS.

The market observer argued the recent media reports about a deal were too detailed to ignore.

Belgian daily De Standaard reported this weekend that an offer of some EUR 38 (USD 53.1) per share of Omega Pharma was under preparation. The main reason for the planned bourse exit would be the low valuation of the company on the stock market, according to various Belgian newspapers. On Monday, Omega Pharma confirmed that a bourse exit would be one of the options under consideration but underlined that a definitive decision was still pending.

According to Gille, the share is indeed undervalued at the moment but the analyst sees at the same time a number of hurdles, including the excessively centralised organisation which was among the factors for the recent troubles and the following share price decline.

RBS raised its share price target on Omega Pharma to EUR 41 and upheld its "buy" recommendation on the stock.

Shares in the company lost 4.22% to EUR 33.60 at 1052 CET in Brussels on Tuesday.

(EUR 1.0 = USD 1.397)
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Publication:ADP News Belgium
Date:Jul 12, 2011
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