MUMBAI, June 21: Glaxo-Wellcome is looking at "suitable" acquisitions in India as part of its strategy to widen its product range and increase its marketshare. The British drug multinational's two Indian subsidiaries, Glaxo India and Burroughs Wellcome India, have together put up a war-chest of Rs 400 crore to play the takeover game.

Shareholders of Burroughs Wellcome India Ltd (BWIL) today approved enabling resolutions at the annual general meeting in Mumbai to facilitate an investment of upto Rs 100 crore in the shares of any body or bodies corporate. In the case of Glaxo India, the AGM approved a limit of Rs 300 crore.

Both the investment limits are "in addition to the investments in shares of any body or bodies corporate which the board of directors of the company is entitled to make upto the limits prescribed under Section 372 of the Companies Act".

Observed T. Thomas, chairman of Glaxo India and Burroughs Wellcome India, with a degree of understatement: "Fortunately, we have enough financial resources for such acquisitions". Thomas' speech was taken as read at the Glaxo AGM in his absence. Glaxo and BWIL managing director HR Khusrokhan told shareholders: "If an attractive opportunity comes our way then we must move quickly to strike the deal and the enabling resolution will help us act fast". About the expected merger of the two companies, Khusrokhan said "it was a mere legal formality". He pointed out both companies were already working together on the operational front. But wage disparities between the two companies had to be settled before the merger, he said.

He assured shareholders that the valuation of shares to determine the swap ratio for the merger would be done soon.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.