Sun Pharma wins Taro takeover case in Israel

27 August 2008

Mumbai: An Israeli court has ruled in favour of Sun Pharma in the Taro takeover case, rejecting the Israeli company's contention that Sun Pharma should have conducted a ''special tender offer'' under Israeli law.

Sun Pharmaceutical Industries Ltd will now be in a position to complete the previously announced tender offer by its subsidiary, Alkaloida Chemical Company Exclusive Group Ltd, Sun Pharma said in a website release.

Sun Pharma said the court has accepted all elements of its defence of the litigation brought against it in the Tel-Aviv District Court by Taro Pharmaceutical Industries Ltd and some of its directors.

''Following the closing of the tender offer, all conditions to Sun Pharma's option agreement to acquire all the shares held by the controlling shareholders of Taro will be satisfied and the controlling shareholders will have to deliver their shares,'' the release said.

It is ''disingenuous'' for Taro's directors to claim now, over a year after they approved the transaction, that a special tender offer was required, the court observed.

The directors should have ''studied the agreements" prior to their being signed, and should have confirmed then that they were in the company's best interest, Judge  Michal Agmon-Gonen J said, adding, the directors cannot claim now that they suddenly decided a special tender offer is necessary.