The Apex Court will take up the pleas of Sun Pharmaceutical and Ranbaxy challenging interim stay order on merger by the Andhra Pradesh High Court on May 27.

The appeal by Sun Pharma challenges the High Court’s temporary stay order on the grounds that the court did not have territorial jurisdiction and it had passed the order without giving any reason.

The Andhra Pradesh High Court passed the stay order on a petition by two investors alleging insider trading in the Sun Pharma-Ranbaxy merger.

Based on the writ petition filed by some individual investors, the High Court, while ordering the status quo, had issued notices to Securities and Exchange Board of India (SEBI), BSE, NSE, Sun Pharma, Ranbaxy, Daichii Sankyo and Silver Street Developers.

Sun Pharma had announced in April that it was acquiring Ranbaxy in a USD four billion deal.

Sun Pharmaceutical said Ranbaxy shareholders will get 0.8 Sun Pharma shares for each Ranbaxy share. It added that the merged company will become the world's fifth-largest specialty generics company and the largest drug firm in India.


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