Sun Pharma vows 'appropriate action' as merger halted

NEW DELHI: Drug major Sun Pharma today said it will take "appropriate action" in the wake of the Andhra Pradesh High Court suspending the pharma company's $4 billion deal with Ranbaxy Laboratories.

"With regards to the petition filed, the matter is sub judice and hence we cannot make specific comments but we would be taking appropriate action as advised by our legal counsel," a Sun Pharma spokesperson said in a statement.

The Andhra Pradesh High Court had issued orders to BSE and NSE to maintain interim status quo on the matter. The court order came on a writ petition filed by some individual investors.

The High Court had issued notices to the Securities and Exchange Board of India (SEBI), BSE, NSE, Sun Pharma, Ranbaxy, Daichii Sankyo and Silver Street Developers.

The petitioners had 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 Developers.

The petitioners also requested the court to 'restrain' BSE and NSE from giving any clearance to the scheme of amalgamation or merger between the two drug-makers.

"The matter related to purchase of shares of Ranbaxy Laboratories does not violate Insider Trading Rules," the Mumbai-based firm said.

The company holds itself to the highest standards of corporate governance and business ethics, it added.

"Our Code of Conduct serves as a compass that guide the actions of our employees and directors ensuring consistent and uncompromising integrity as we build trusted relationships around the world," the company said.

Last month, Sun Pharma had announced to acquire troubled Ranbaxy Laboratories 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.