Even though Emami Ltd’s bid for Mumbai-based Zandu Pharmaceuticals has been referred to the Company Law Board (CLB), the Emami management is continuing to talk to the promoter group at Zandu that has spurned their offer. Harsh V Agarwal, a director of the Emami Group of Companies, said, “We are holding talks with the Zandu management.”

Emami had launched an open offer for Zandu at Rs 7,315 a share to mop up at least 20% of Zandu shares. The offer was supposed to open on July 24 and close on August 12, but Emami is still waiting for a nod from the Securities & Exchange Board of India.

Emami Ltd had picked up 3.5% of Zandu shares from the market before buying 24% stake of the Vaidya family, co-promoters of Zandu along with the Parikhs, in a deal announced May 30. With the Parikhs refusing to sell out, Emami has offered them a joint management role in the company.

Zandu’s AGM scheduled for August 9 had to be postponed, after the Bombay High Court ruled that the CLB would have to sort out the issue. The court has given it time till August 20 to pass a “reasoned order”. Zandu had moved the CLB in July itself but the CLB had, at the hearing on July 28, passed an order that since Emami and Zandu were both listed companies, Sebi was the appropriate authority to look into any acquisition disputes. Zandu then appealled to the Bombay High Court, which passed on the onus to the CLB.