A court has temporarily halted generic drugmaker Sun Pharmaceutical Industries’ $3.2 billion takeover of rival Ranbaxy Laboratories until it decides on a petition for a probe into alleged insider trading.
Last week, two individuals filed the petition in the high court of Andhra Pradesh, requesting the court ask the market regulator and the two main stock exchanges to halt the deal and order the probe.
The court then ordered an ‘interim status quo’ on the deal and asked all the involved companies, the regulator, and the stock exchanges for details, according to an order dated April 25.
The Indian market regulator said this month it was seeking information from Ranbaxy and Sun Pharma on the transaction and would ask for stock exchange trading data after receiving ‘multiple complaints.’
Sun Pharma said in a statement the company had not received any communication related to the court order. It also said that it had not violated any rules.
“The matter related to purchase of shares of Ranbaxy Laboratories does not violate Insider Trading Rules,” Sun said, adding it would take ‘appropriate action’ on the petition as advised by its lawyers.
EP News Bureau- Mumbai