Zenotech Laboratories Ltd. fell the most in 29 months in Mumbai trading after India’s Supreme Court ruled today that Daiichi Sankyo Co. doesn’t need to increase its 782.3 million rupees ($16.7 million) offer for a stake in the biotechnology company.
Chief Justice S.H. Kapadia and Justice Aftab Alam of India’s highest court overruled an earlier judgement, allowing Daiichi to proceed with its year-old offer to pay 113.62 rupees a share for 20 percent of Zenotech.
Investors seeking 160 rupees a share took the matter to the Securities Appellate Tribunal, which endorsed their request in October.
Zenotech slumped 13.8 rupees, or 12 percent, to end trading at 99.7 rupees, the biggest fall since Jan. 22, 2008. Today’s stock decline values the Hyderabad-based company at 3.43 billion rupees.
Daiichi, Japan’s third-largest drugmaker, acquired an interest in Zenotech when it bought 64 percent of Ranbaxy Laboratories Ltd. in November 2008. Ranbaxy owned a 47 percent stake in Zenotech, and Daiichi was required to make an offer to buy 20 percent of the biotechnology company under Indian takeover rules.