MUMBAI, July 31: The Mumbai High Court today ordered the appointment of a new valuer to determine the fair swap ratio for the merger of Sandoz India with Hindustan Ciba Geigy (HCG).

Minority shareholders of Sandoz led by Kiran Mehta, a chartered accountant, had moved the court based on a modified resolution approved at Sandoz India's December 6 meeting which incorporated a request to the High Court "to appoint as it may think fit one or more valuers to determine the fair exchange ratio."

The original swap ratio of 17 shares of Sandoz for 10 shares of Hindustan Ciba was arrived at based on the valuation reports of Arthur Andersen & Associates, Coopers & Lybrand and Bansi Mehta & Co. The Court decision, which will be binding on both companies, follows a compromise offered by Hindustan Ciba-Geigy to appoint Arun Gandhi of NM Raiji and Company to determine the existing swap ratio is fair.

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