Zee Media Bureau
New Delhi: The Supreme Court on Wednesday asked the Andhra Pradesh Hight Court to take a decision within two days on a plea challenging merger of Sun Pharmaceutical with Ranbaxy.
The apex court will take up on May 27 the pleas of Sun Pharmaceutical and Ranbaxy challenging interim stay order on merger by HC.
The Mumbai-based Sun Pharma, on April 6, announced that it would fully acquire Ranbaxy in an all-stock transaction with a total equity value of USD 3.2 billion, along with debt of USD 800 million, taking the overall deal value to USD 4 billion.
In a setback to Sun Pharma-Ranbaxy merger process, the Andhra Pradesh High Court last month issued orders to BSE and NSE to maintain interim status quo on the matter.
Based on a writ petition filed by some individual investors, the High Court, while ordering the status quo, issued notices to Securities and Exchange Board of India (SEBI), BSE, NSE, Sun Pharma, Ranbaxy, Daichii Sankyo and Silver Street Developers. “There shall be interim status quo, as prayed for,” Justice P. Naveen Rao said in his order.
The petitioners alleged that there was heavy trading of Ranbaxy stock before the merger with Sun Pharma was announced on April 6, and requested the court to direct the SEBI to investigate the insider trading of Ranbaxy shares and take appropriate action against Sun Pharma and Silver Street.
With PTI Inputs
First Published: Wednesday, May 21, 2014, 12:28