Goldshield management trumps AIT bid

LONDON (Reuters) - Goldshield Group GSD.L could be effectively in the hands of its management after they increased their offer on Sunday for the generic drugs supplier, and said they now have undertakings from over half of the company.

Midas Bidco, led by Goldshield's executive management and financed largely by buyout firm HgCapital, is now offering 485 pence per share for the company, trumping a 480 pence offer from rival AIT, and said it has undertakings from 45.15 percent of the shareholder base.

Along with about 5 percent of undertakings of the share capital not to vote, the group effectively has enough now to shut out a consortium involving the company's former CEO.

The AIT group involves the Fuhrer family, owners of Israel's Neopharm, in conjunction with Goldshield's former chief executive Ajit Patel.

Patel stepped down as chief executive in 2007 to successfully fight a price-fixing case brought against Goldshield by Britain's Serious Fraud Office.

The new offer values Goldshield at about 179 million pounds and compares with 440 pence per share that was first offered by the AIT group in September.

($1=.6006 pounds)

(Reporting by Ben Deighton; Editing by Mike Nesbit)