Sun set for a long battle for Taro

30 July 2008

Mumbai: Sun Pharma's bid to takeover Israeli firm Taro Pharmaceuticals could take longer due to a legal tussle, Sun Pharma chairman and managing director Dilip Shanghvi said.

''Going by the behaviour displayed by Taro Pharmaceuticals, its director and the Levitt family and its passion for filing court cases, it appears that ultimate resolution for all issues involved is likely to take quite a bit of time,'' Shanghvi said, while ruling out chances of an out-of-court settlement with the Israeli.

''It's not something that will get over very soon,'' he said, adding, there are other options before the company ''to secure our long-term interests and we remain committed to the completion of this transaction''.

Addressing industry analysts during the announcement of the company's first quarter results, Sanghvi said it plans to use all existing facilities of Taro to the maximum and to increase investment in R&D in Israel.

Sun also reaffirmed its commitment to maintaining and enhancing Taro's facilities in Israel, and to a fruitful relationship with Taro's employees, after Sun acquires control of Taro.

The clarification followed reports saying the mayor of Haifa had sent a letter to Israel's minister of industry expressing concern over Sun's plans to shift production to India once it acquires Taro.