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Mumbai, June 11: The Securities and Exchange Board of India (Sebi) chairman DR Mehta on Monday heard German Remedies (GR) shareholders and other parties involved in a dispute over the allegedly differential pricing of the open offer for GR by Zydus Cadila. Other parties who made presentations included Zydus Cadila, its merchant banker DSP Merill Lynch and the aggrieved GR shareholders.

Mr Mehta heard all the parties for over four hours and will pass an order in the next seven to 10 days. Till the Sebi order comes, the open offer remains on hold. Zydus Cadila had, on April 10, announced the acquisition of a 27.72 per cent stake in the Mumbai-based German Remedies at Rs 650 per share from Asta Medica AG and Heller Vermogensverwaltungs GmbH. An open offer to acquire a further 20 per cent shareholding from the public through Recon Healthcare (Zydus Cadila’s wholly-owned subsidiary) at Rs 650 per share was made in line with the takeover code on April 17.

Sebi had called for a hearing following the direction by Bombay High Court, where a writ petition was filed by some shareholders of GR against the open offer by Zydus Cadila. Minority shareholders had raised concern, given that the two other suitors in the fray for German Remedies — Pharmacia and Bristol Myers Squibb — had apparently offered higher prices in the region of Rs 800 per share for the proposed buyout. The deal, however, apparently swung Cadila’s way at Rs 650 per share, backed by simultaneous offer for the “perpetual rights” to five Asta brands for Rs 52.6 crore. The five brands in question are Deriphyllin, Paractol, Ildamen, Xipamid and Beta Xipamid. GR scrip, which opened at Rs 429.50 on Monday touched a high of Rs 437 and closed at Rs 433.90 — up 1.02 per cent from Friday’s close on the BSE.