Taro’s Special Committee rejects proposal from Sun Pharma

It seems that Mumbai-based drug manufacturer Sun Pharmaceutical Industries (Sun Pharma) will have to wait a little longer to control its Israeli subsidiary Taro Pharmaceuticals. According to a press release issued by Taro Pharmaceuticals, a Special Committee of Taro’s board of directors unanimously rejected the Indian company’s offer to purchase all issued and outstanding shares of Taro not currently held by Sun Pharma for $24.50 per share.

Sun Pharma, which already holds 66.32 per cent stake in Taro, had made the non-binding offer for the remaining stake on October 18, 2011. A Sun Pharma spokesperson declined to comment on this issue.

Taro’s Special Committee judged that Sun Pharma’s offer was “inadequate and not in the best interests of Taro’s minority shareholders”.

The press release stated that the Special Committee reached its conclusion after a thorough review of Taro’s business and prospects with its independent financial advisor Citigroup Global Markets, and its independent legal counsel Goldfarb Seligman & Co as its Israeli legal counsel and Willkie Farr & Gallagher LLP as its US legal counsel.

EP News Bureau

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