SC asks Andhra HC to decide on Ranbaxy-Sun Pharma merger

The Supreme Court today asked the Andhra Pradesh High Court, which had passed an

RELATED ARTICLES

interim order staying the $4 billion merger of Ranbaxy with Sun Pharma, to decide the issue within two days.

Hearing appeals filed by Sun Pharmaceutical, Ranbaxy Laboratories and Daiichi Sankyo Company against HC interim order, a bench of justices B S Chauhan and A K Sikri asked the HC to decide the issue and posted the case for hearing on May 27.

The pharmaceutical giants approached the court seeking its direction to vacate interim order on the High Court which had on April 25 stayed the merger and ordered status quo.

The HC had passed the order on a petition filed by two individual investors who alleged that there was heavy trading of Ranbaxy stock before the merger with Sun Pharma was announced on April 6.

They had pleaded the court to direct the SEBI to investigate the insider trading of Ranbaxy shares and take appropriate action against Sun Pharma and Silver Street.

Senior advocate Abhishekh Manu Singhvi, appearing for Sun Pharmaceutical, submitted that there is absolute abuse of process of law in the case as the order was passed on a petition of two individuals which would affect the biggest deal in the pharma sector.

The bench, however, said that shareholders have right to challenge the merger and asked the HC to decide the issue.

The Mumbai-based Sun Pharma had on April 6 announced that it would fully acquire Ranbaxy in an all-stock transaction with a total equity value of $3.2 billion, along with debt of $800 million, taking the overall deal value to $4 billion.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Lower home loan rates signal tough fight for market share

    Barely four weeks ago, a few public sector banks reduced interest rates on time deposit schemes by 10 to 25 basis points, depending on the tenure of t

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Could prohibition mean profiteering?

In the mid 1930s, an American journalist asked Bapu if ...

Zehra Naqvi

The five universal languages of love

Love is a universal language. Don’t we all believe that? ...

Dharmendra Khandal

Time to protect our endangered wildlife species

After 65 million years of existence, the earth’s biodiversity is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture