Taro advises shareholders against Sun's open offer

11 July 2008

Mumbai: Taro Pharmaceutical Industries has rejected last month's open offer by Sun Pharmaceuticals to acquire all its outstanding ordinary shares for $7.75 each in cash, saying the offer is inadequate. Taro also asked its shareholders not to tender any of their shares.

The board of Taro Pharceuticals Ltd concluded that the offer is ''financially inadequate'' and a ''sham'' because ''we believe Sun knows that it will not be accepted by the shareholders,'' the Israel-based company said in statement.

Taro chairman Barrie Levitt and directors Daniel Moros and Tal Levitt, however, did not participate or vote in the board meeting.

Taro said Sun's tender offer price is far below the current market price of its shares and much less than what Sun paid for Taro shares in the open market recently.

Taro said the board of directors has been advised by its counsel that the offer was in violation of the Israeli companies law.

Sun Pharmaceuticals made the offer after Taro unilaterally cancelled a May 2007 merger agreement between the two companies.