The company's scrip, which closed at Rs 156.85 on the Bombay Stock Exchange (BSE) on October 29, has appreciated by over 273 per cent in a span of three months.

Marketmen say that American Remedies had been in "alliance talks" for some time now and international consultants, Ernst & Young, may be assisting the company in its effort. The American Remedies top brass, however, did not respond to faxed queries on this from The Financial Express.

This is probably the second time round that the American Remedies scrip has generated such levels of interest, backed by rumours on an imminent deal.In August to September 1998, the scrip had vaulted from around Rs 35 to Rs 60 on the BSE, though the company at that time reportedly claimed that it was being targeted for a takeover.

Ten months later, on July 30, 1999, the scrip commenced its northward climb, once again, closing at Rs 42 on the BSE. August 19 saw the scrip move up to Rs 62.25, though it fell to Rs 52 on September 14. However, it bounced back to Rs 83 on September 27, moving further up to Rs 148.40 on October 27. The scrip closed at Rs 156.85 on October 29 on the BSE.

Volumes have also moved up from 1,400 on September 14, to 30,500 on September 27. On October 22, volumes spurted to 1,56,500 but dropped sharply to 54,400 on October 29. "The interest in American Remedies is both due to its attractiveness as a takeover target and potential benefits, post the revamp (following the disposal of its bulk drug unit). A year ago, companies like Searle and Ranbaxy had eyed the company," an analyst at a foreign brokerage said.

American Remedies has been in the news over the recent past, following the sale of its bulk drugs unit at Alathur, near Chennai to the Sanmar Group. The company has also forged a co-marketing alliance with British multinational Glaxo to distribute French company Biocodex's product in India.Industry sources say that the company had also tried to hawk its vitamin brand, Becozinc, though the current scenario on this front could not be ascertained.