Friday, 29 August 2008

Taro Takeover: Sun Pharma got favorable ruling

Sun pharma is with in striking disance w.r.t its deal on buying Israeli generic player Taro Pharma. A district court in Tel Aviv has sided with Sun pharma on Taro’s tender issue.
The rejection of Taro’s plea will prompt Sun to acquire 12 % stake of the Israeli company’s chairman Barrie Levitt and his family members at $7.75 a share.
Sun Pharma's Hungarian subsidiary Alkaloida offered to acquire shares of Taro, including that of the promoters, as part of an option agreement, which was signed earlier between Sun and Taro during the merger talks. That agreement gives Sun Pharma an option to acquire the promoters’ stake, in the event of a failed merger.
Earlier, the US Federal Trade Commission (FTC) had given green signal to Sun to acquire Taro Pharmaceuticals, after the regulator forced the Indian generic company to sell off three of its drugs to Torrent Pharmaceutical, to avoid a monopolistic situation in the US market.

However, Sun Pharma may face legal battles in New York courts in its attempt to take over, unless its chairman Barrie Levitt and family give up in a few weeks. Also, it will be interesting to watch whether Taro challenge the District Court's decision in the Israeli Supreme Court. (Source: Business standard)

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