Andhra HC holds ruling in Ranbaxy-Sun Pharma case
May 23 2014 , Hyderabad
After hearing the case, following the Supreme Court’s direction on Wednesday, the court reserved the order for Saturday. The court had earlier issued interim orders to maintain status quo with regard to the merger.
The petitioners at the end of April had raised objections over the heavy trading of Ranbaxy share before the announcement of acquisition of Ranbaxy by Sun Pharma. The court had also asked other parties like Daichii Sankyo and Silver Street developers not to go ahead with the process.
Justice G Chandraiah heard arguments on behalf of petitioners as well as Sun Pharma, Ranbaxy and Sebi. The market regulator informed the court that an investigation was on regarding insider trading as Ranbaxy shares jumped over 20 per cent, a week before the deal was announced.
The Ranbaxy counsel said merger should not be stopped, as insider trading and merger were two different things and could not be looked from the same angle. “The petitioners have no locus standi to file the petition to restrain the merger citing insider trading as they bought shares after the announcement," said D Prakash Reddy, counsel for Ranbaxy.