Israel's Taro Pharmaceuticals has sued its suitor Sun Pharmaceutical Industries in an Israel court, allegedly for thwarting attempts to sell off its subsidiary in Ireland.

On June 15, Taro started litigation in Israel to stop Sun from engaging in "practices that we deemed detrimental to our ability to maximise the value of the Irish operations in a sale," Taro chairman Barrie Levitt said in a letter to shareholders.

Taro's subsidiary in Roscrea, Ireland manufactures injectables and owns a multi-purpose pharmaceutical manufacturing and research facility, which it acquired a few years ago.

Taro backtracked from an over-an-year-old merger deal with Sun Pharma citing the company's dramatic turnaround within a year of the agreement. Sun Pharma, Taro's largest shareholder, with 34.4 per cent stake, had threatened to sue the Israel drug company for scuttling a $460 million deal.

Taro has offered Sun to consider an offer to purchase the Irish operations if it wishes to do so. "We will give any proposal submitted by Sun the same serious consideration that all bona fide offers receive," said Barrie Levitt.

Sun Pharma said its opposition to Taro's move stemmed mainly from concerns regarding the sale process and the gross undervaluation of its assets.

In its letter to Sun Pharma on May 18, Taro had accused Sun Pharma of opposing its intentions to sell off its loss making Taro Ireland to a group of Irish investors, citing the merger agreement.

Taro had also filed a lawsuit on 28 May seeking to ''protect'' minority shareholder interests in case of Sun attempting to purchase Taro shares in an amount that would increase its voting powers to more than 45 per cent.

The letter said it has sought direction to ensure that "Sun comply with the Special Tender offer rules under Israeli law which provide important protections for minority shareholders."