Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Zenotech Slumps Most in 29 Months on Daiichi Ruling

July 8 (Bloomberg) -- 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.

To contact the reporter on this story: Adi Narayan in Mumbai at anarayan8@bloomberg.net.

To contact the editor responsible for this story: Jason Gale at j.gale@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.