Court idles Sun-Ranbaxy deal
Insider-trading allegations have temporarily halted the Sun-Ranbaxy merger. The Wall Street Journal reports a court put a halt to the $3-billion merger until after an investigation. The move means Daiichi Sankyo, owner of Ranbaxy, may have to hold onto its 65% ownership stake a little longer.
The attempted sell-off follows a series of regulatory missteps that exacted harsh measures, including the FDA banning products from four of Ranbaxy's sites.
While Daiichi Sankyo would no longer own Ranbaxy, the purchase agreement would give the company a 9% stake in the new Sun-Ranbaxy company.