Bidding war in the offing for Goldshield

A U.K. drugmaker could find itself in the center of a bidding war. Generics maker Goldshield Group faces a bitter takeover battle, as managers work up a counterbid to last week's £162 million ($262 million) offer led by ex-CEO Ajit Patel.

Goldshield's independent directors said late Friday that they were recommending that 440 pence-per-share bid from AIT, a newly incorporated company backed by Patel and the Fuhrer family, which owns Israel's second-largest drugs business, Neopharm. In the offering document, AIT says it's been in talks with the company since June.

But the management team didn't concur with the directors, and they control some 7 percent of the company's shares. Led by current CEO Rakesh Patel, they're now working with a private equity firm on a counter-offer. And if that doesn't work, they may mount an assault on the AIT bid, attempting to persuade shareholders that the offer undervalues the company.

- see the story in the Times