Sun gets support in Taro takeover bid

Sun Pharma on Thursday got another shot in the arm in its takeover battle against drug firm Taro, with proxy advisory firm RiskMetrics Group asking shareholders of Israeli company to vote against the re-election of directors in the upcoming annual general meeting.

Sun Pharma on Thursday got another shot in the arm in its takeover battle against drug firm Taro, with proxy advisory firm RiskMetrics Group asking shareholders of Israeli company to vote against the re-election of directors in the upcoming annual general meeting.

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Sun Pharma said, "... With little indication that the company has moved to rectify its continuing problems, and with little information disclosed on the process of solving these problems, RMG now recommends that shareholders reject entire slate of management candidates."

This is the third report by an independent proxy firm asking Taro shareholders to vote against Taro’s board of director and their indemnification proposal.

Earlier, two independent proxy advisory firms Glass Lewis and Proxy Governance had also issued reports advising Taro shareholders to hold board accountable for its actions and vote against all the proposal made by them.

Proxy advisory firms in US offers consultancy services on corporate shareholders voting.

Sun Pharma is locked in a takeover battle with Taro after their $454-million (Rs 2,12,472 crore) merger deal, signed in 2007, was terminated by the Israeli firm unilaterally.