Ranbaxy board approves takeover by Daiichi

July 15th, 2008 - 4:04 pm ICT by IANS  

Chandigarh, July 15 (IANS) The extraordinary board meeting of pharmaceutical giant Ranbaxy in Mohali Tuesday approved the $4.6-billion takeover by Japanese pharmaceutical major Daiichi Sankyo. The Ranbaxy meeting was over within a few minutes with the takeover with the Japanese pharma manufacturer - the third biggest pharma company in Japan - being approved unanimously.

Other issues approved at the meeting included increasing the number of shares that employees can hold from 40,000 to 300,000. It also approved enhanced compensation for Ranbaxy’s chief executive and managing director Malvinder Singh to a maximum of Rs.250 million a year.

Singh declined to say anything about the meeting.

The takeover by the Japanese company was announced last month with Singh and his family agreeing to sell their 34.8 percent stake in the company. Ranbaxy will become a Daiichi subsidiary after the takeover is completed.

The approval for the takeover came amidst reports that the US Food and Drugs Administration (FDA) had initiated action against the pharma manufacturer over allegedly substandard drugs.

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