Sun extends offer for Taro by a month as Israeli SC stays acquisition

04 September 2008

Mumbai: Sun Pharmaceutical has extended its tender offer for a controlling stake in Israel's Taro Pharmaceutical Industries Ltd by a month after the Israeli Supreme Court on Wednesday issued a temporary injunction on an earlier Israeli court ruling in Sun's favour.

The offer will now close on 3 October, a company said in a statement today.

On Wednesday, the Israeli Supreme Court issued a temporary injunction halting Sun Pharmaceutical Industries' bid to acquire Taro Pharmaceutical, a week after the Indian company won a litigation brought against it in the Tel-Aviv District Court by Taro Pharmaceutical.

The SC order will remain in force until it rules on Taro's application against the 26 August ruling by a lower court allowing Sun Pharmaceutical to proceed with the takeover. The apex court will hear the appeal before 25 December.

In its ruling, the Tel Aviv District Court had ''rejected Taro's contention that Sun Pharma should have conducted a special tender offer under Israeli law. As a result, Sun Pharma will be in a position to complete the previously announced tender offer by its subsidiary, Alkaloida Chemical Company Exclusive Group (Alkaloida). 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,'' Sun said in a release earlier.

The district court also asked Taro and the other plaintiffs to pay Sun Pharma costs related to the litigation.