With news making rounds about the likely acquisition of a substantial stake by Fortis Healthcare in the Wockhardt Ltd's division Wockhardt Hospitals, the pharma company's shares leaped 10 percent on the Bombay Stock Exchange.

According to the Economic Times report, unnamed sources said that Fortis is expected to strike a broad deal for buying up to 74 percent of unlisted Wockhardt Hospital chain for nearly Rs. 7.5 billion. Sources also say that though private equity firms General Atlantic and Advent were also in pursuit, Fortis is on the brink of wrapping up the deal.

In case the Fortis-Workhardt deal comes through, Fortis will put in an investment of Rs. 4 billion in the first stage for a
40 percent equity stake, and will increase it afterward. The deal is expected to be finalized once both the companies work around their differences, largely about the issue of branding the hospital chain.

There has been no official confirmation about the deal under negotiation from the Wockhardt end, while a Fortis spokesperson said: "We are in the market. We cannot comment on market speculation or any individual deals."