Mark Mobius objects to Sun's acquisition of Taro

CNBC-TV18 shares with domain-b its exclusive interview with Mark Mobius:

Take us through your objection to Sun's offer to buy Taro.
Basically, it is a price issue. Since the original bid was made at $7, which is now outstanding by Sun, the prospects of the company has improved dramatically. Taro has really risen from the ashes from a very difficult time and it looks like it may be re-listed; it was earlier de-listed. So, the prospects are much better and the price that Sun is offering is not acceptable in view of that.

The agreements that Sun has had with Taro seem to be Sun's protection. How are the Israeli laws placed? Are they enough to stop or scuttle Sun's bid to build on its contract and force Taro's promoters to sell their 12-per cent stake?
According to the information we get from our Israeli Counsel, the Israeli law could prevent this from going forward if minorities object it. There is action-taking place in Israel. So, even if Sun wins in New York, then they would have to deal with the situation in Israel. So, there is that possibility. I am not making any predictions because I have no idea what the people and Courts in Israel would judge. But that is something we have to look at pretty carefully.

What would be Templeton's role in that case? Would you want to try the law in Israel itself and take Sun to Court in the Israeli courts?
We have supported Taro in their objection to Sun's takeover at that price, because we feel the price is not a good one. In that sense, we are supporting the Taro management and the key owners.

The question now is what will happen in New York. Sun has taken the issue to court in New York and what happens after that in Israel. This would probably be a long drawn out situation.

There is a reasonable amount of consolidation happening in the pharma industry globally and there could be other bidders who would evince interest in Taro. What would be the right price?
I am looking at $20. Originally, we were looking to something like $12 and then it went to $15 because the company has constantly shown improvements in their results. So, I am looking at around $20 per share, which actually is good news for Sun because they own a pretty substantial block. We own 13.5 and they own much more than that. So, they are making money on the increase in the valuations.