Sun offers to buy Taro shares at a premium

05 January 2009

Sun Pharmaceuticals has offered to pay a premium over the current market price for shares of Israel's Taro Pharmaceuticals and to resolve the issue with Taro as recommended by the Israeli Supreme Court.

"We are open to discuss...both proposals -- to offer an excellent solution to this dispute and offer a significant premium to the public shareholders over the current market prices," Sun Pharmaceutical Industries chairman Dilip Shanghvi said in a letter to the Taro board of directors.

Sun Pharma said its subsidiary Alkaloida Chemical Company Exclusive Group Ltd (Alkaloida), has also extended the expiration date of the tender offer for the purchase of all outstanding ordinary shares of Taro Pharmaceutical Industries Ltd.

''The offer will now expire at 5:00 pm, New York City time, on 9 January 2009, unless further extended or earlier terminated,'' Sun Pharmaceuticals said in a release.

''The tender offer was extended to comply with a continuing order issued by the Supreme Court of Israel temporarily prohibiting the closing of the offer until the Supreme Court issues a decision on the appeal of the litigation commenced against Alkaloida and its affiliates by Taro and certain of its directors regarding the applicability of the special tender offer rules under the Israeli Companies Law to the offer,'' the release said.

The Tel-Aviv district court had previously ruled in favor of Sun Pharma that a special tender offer was not required.