The Supreme Court today declined to vacate the stay imposed by the Bombay High Court on the merger plan of Parke-Davis with Pfizer. It stated that whatever has been done before the March 13 stay order would not be undone.
The court passed the order on the appeal moved by Parke-Davis against the high court order.
The high court had passed the order on the application of a Parke-Davis shareholder challenging the swap ratio. He alleged that all shareholders had not agreed to the merger and it violated the Companies Act.
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Senior counsel for the pharma major, F S Nariman, submitted before the Supreme Court bench consisting of Justice R C Lahoti and Justice Ashok Bhan that it was impossible to get the assent of all shareholders.
In this case, 99.04 per cent shareholders have agreed to the merger but a few shareholders have objected to it. The petition in the high court was filed by one such shareholder, Dinesh Lakhani, who appeared in the apex court in person to oppose the merger plan.
The Parke-Davis Counsel said one crore shareholders of the company were affected by the high court order.
The stock exchange has suspended trading in the shares and banks have taken an indifferent stance.