Ranbaxy Labs-Daiichi Sankyo weighing legal options against earlier promoters - Angel Broking

Daiichi Sankyo the Japanese parent of Ranbaxy Laboratories, is said to be weighing legal options to sue the former promoter-shareholders of the generics drugmaker. The Singh brothers - Shivinder & Malvinder - had sold Ranbaxy to Daiichi in 2008 for $4.6 billion. Daiichi bought a 51% stake - including 34.8% that the Singhs held - in June 2008. In a statement, the company said it believes "certain former shareholders" of Ranbaxy concealed and misrepresented critical information concerning the US Department of Justice and Food and Drug Administration (FDA) investigations. This will add to the overall legal tussle of the company which has again started with the DGCI probe into the company.

The stock after all the negative news, is valued attractively for long term investors, but given the uncertainty in the short term we recommend a Neutral on the stock.

Source : Equity Bulls

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