The comments come amid reports that Pfizer, the world's largest drug maker, is planning to offer to buy the non-promoter portion of Ranbaxy's shareholding to counter Japanese company's Daiichi's agreement to buy the promoter holdings.

Earlier this week, Ranbaxy's promoters, Malvinder Singh and family, had agreed to sell their 34.8 per cent stake to Daiichi Sankyo, which would be followed by a mandatory open offer for an additional 20 per cent stake.

Financial institutions hold 21.58 per cent in Ranbaxy. Life Insurance Corporation of India (LIC [Get Quote]) holds the lion's share of 15.84 per cent stake. Pointing out that the Rs 737 a share quoted by Daiichi Sankyo is reasonably good, insurance company officials said they will take a decision only when a firm offer is made.

"We will take a call on the last day of the open offer," a senior GIC official said. Insurance company officials said no one, not even Daiichi, has written to them so far. "We will sell to whoever offers us the highest price," the GIC official said.

A senior LIC official said Rs 737 is a good price, looking at the volatility in the stock market and the fact that the Ranbaxy stock had been languishing for some time. "However, we will decide later," he said.

Meanwhile, the Ranbaxy share was up by 4.31 per cent on the Bombay Stock Exchange to close the day at Rs 566.90. Pfizer Ltd [Get Quote], the domestic unit of the world's biggest pharma company, rose 4.76 per cent to Rs 620 amid growing speculation about a counter-offer by the US major. Pfizer shares had surged 17.59 per cent intraday to touch Rs 695.

Shares of NYSE-listed Pfizer Inc, which has a market capitalistion of close to $120 billion, closed 1.03 per cent up at $17.73 in the US market yesterday.