Ranbaxy slumps, Sun Pharma surges on $3.2-billion acquisition

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

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

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

Sun Pharmaceutical shares rose as much as 4 %.

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 % in Sun Pharmaceutical after the deal.