Daiichi trashes Zenotech claim of agreed offer price

Japanese drug firm Daiichi Sankyo today denied having any agreement with Zenotech on open offer, a claim disputed by the Hyderabad-based firm, which warned of 'consequences' if the pact was not honoured.

"We do not have any agreement with Zenotech over the issue of open offer and we will remain firm on our decision to launch the open offer at predetermined price," Daiichi Sankyo Director-in-Charge, Investor Relations, Shige Khodo told PTI.

Daiichi Sankyo had announced that it will make an open offer at Rs 113.63 per share starting from March 13 and closing on April 1, 2008.

Also read: Zenotech stakeholders oppose Daiichi takeover offer

Daiichi Sankyo's stand has, however, been contested by Zenotech. "They should go back and check all the mails sent by me, and minutes of the meeting between the two companies and also the valuation reports made by Ranbaxy," Zenotech Laboratories Managing Director Jayaram Chigurupati said.

"As they are denying everything they have committed, they will have to face consequences," he added, without elaborating Zenotech's future course of action.

He said if there was no agreement between the two firms, "why did the 10 officials of Daiichi Sankyo visit our Hyderabad campus".

"Ranbaxy Laboratories was involved in the every stage of negotiation between the two companies," he said.

Ranbaxy officials declined to comment saying they are not aware of any such development.

Daiichi Sankyo had to make an open offer for Zenotech after the Japanese firm's acquisition of Ranbaxy Laboratories last year.

Ranbaxy had picked up 38 per cent stake in Zenotech in October 2007, taking its total share holding to 45 per cent and said it would launch an open offer for acquiring additional 20 per cent stake in the company while ruling out a complete takeover.