Sun claims win in Taro M&A suit
Sun Pharma on Wednesday announced that the Israel Supreme Court has ruled in favour of the company in the takeover battle with Israeli pharma major Taro. The court has been a go ahead to Sun to complete the open offer.business Updated: Sep 08, 2010 22:46 IST
Sun Pharma on Wednesday announced that the Israel Supreme Court has ruled in favour of the company in the takeover battle with Israeli pharma major Taro. The court has been a go ahead to Sun to complete the open offer.
The Israel Supreme Court has unanimously dismissed the appeal by Taro Pharmaceutical Industries of the previous ruling by the Tel-Aviv district court, holding that the Israeli special tender offer rules do not apply to the tender offer by Sun's subsidiary Alkaloida Chemical, Sun said in a statement. The court also lifted its temporary order that prohibited the closing of the offer prior to its ruling.
"Sun is gratified that the Supreme Court of Israel has upheld the decision of the Tel-Aviv district court. We are ready to finally move forward now to close the offer and enforce our rights under the Option Agreement to purchase the Levitts' controlling shares," said Dilip Shanghvi, CMD, Sun Pharmaceuticals.
Sun Pharma is the single-largest shareholder in Taro with a 36 per cent stake. The pharma major has been trying to take control of the company ever since their $454-mn merger deal in 2007 was unilaterally terminated by the Israeli firm in 2008.
In 2008, Sun Pharma had launched an open offer for acquiring additional shares of Taro, which was challenged in the Supreme Court and prohibited Sun from closing the offer until the court gives a ruling.
As the offer is scheduled to expire on midnight, New York City time, on Tuesday, September 14, 2010.
Sun Pharma share prices rose 6.4 per cent during the day, before closing at Rs 1,756 with a gain of 2.1 per cent.