Sun goes ahead with Taro acquisition; files suit in US court
26 Jun 2008
Mumbai: Sun Pharmaceutical has decided to move ahead with an `option' to acquire all shares of Taro held by controlling stakeholders and has filed a law suit in New York against the Israeli firm and its board, the Mumbai-based company said in a statement.
"A subsidiary of Sun Pharma has exercised the option under its option agreement to acquire all the shares held by the controlling shareholders of Taro Pharmaceuticals,'' Sun Pharma said in the statement.
Sun Pharma said the subsidiary would commence a tender offer for all ordinary shares as required by the option agreement in the next few days.
The option agreement also required that Sun Pharma commenced its tender offer at $7.75 per share within 30 days after termination of the merger agreement, it said.
Sun claimed it has the option and was in its rights to acquire all shares belonging to Taro chairman Barrie Levitt and those of the controlling stakeholders in the event of a failure to consummate the takeover agreement.
Taro and Sun had signed a $454 million merger agreement in May last year, but, after a year of signing the deal, Taro last month unilaterally terminated the merger agreement.
Sun Pharma also filed a case in the New York Supreme Court against Taro and its board of directors, alleging fraud and breach of agreement and prayed for an order directing them to honour their promises under the 'option' agreement. It also sought an order declaring that the merger agreement was not properly terminated.