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.

Sun said  the offer has been extended to comply with an order of the Supreme Court of Israel temporarily prohibiting the closing of the offer until the court decided on the issue.

The SC judge said she wanted to hear all the details before making a decision, which would be no later than 25 December.

Sun Pharmaceuticals began its bid to take over Israel's Taro in June and had extended its offer until 2 September.

Taro's board opposes the offer, citing it is financially inadequate.

Last week, Sun filed a revised offer that waived certain conditions and said it was not aware of any other conditions that would not be satisfied and that it was prepared to close the tender offer.

According to Sun Pharma, if the temporary order remains in effect and the Supreme Court does not decide on the appeal by 3 October 2008, Sun will further extend the offer while the temporary order remains outstanding.