Ranbaxy Laboratories shares slump, Sun Pharma scrip gains on USD 3.2 bn deal

Shares in Ranbaxy Laboratories fell as much as 3.2 per cent on profit-taking after Sun Pharmaceutical Industries said it will buy the company in a $3.2 billion all-share deal, creating the world's fifth-largest generic drug maker.

Ranbaxy shares had surged 32.6 per cent in six consecutive sessions of gains till Friday's close.

Under terms of the agreed deal, Ranbaxy shareholders will get 0.8 of a Sun Pharmaceutical share for each Ranbaxy share they own. Daiichi Sankyo said in a statement that it will hold a stake of about 9 per cent in Sun Pharmaceutical after the deal.

Sun Pharmaceutical shares, meanwhile, rose as much as 4 per cent.

(Reuters)