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Sun Pharma files suit against Taro

Sun Pharma files suit against Taro
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First Published: Thu, Jun 26 2008. 01 33 PM IST
Updated: Thu, Jun 26 2008. 01 33 PM IST
PTI
New Delhi: The on-going tussle between Sun Pharmaceutical and Taro intensified today with the Mumbai-based company saying it has exercised the option of acquiring all shares of Taro held by controlling shareholders, while filing a law suit in New York against the Israeli firm and its board.
“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 a statement.
The company said it would commence a tender offer for all ordinary shares as required by the option agreement in the next few days.
The Mumbai-based company reiterated the option agreement also required that it specifically commenced its tender offer at $7.75 per share within 30 days after termination of the merger agreement.
Taro and Sun had signed the $454 million merger agreement in May 2007. Sun claimed in the event the merger was not consummated, Taro’s controlling shareholders led by Taro’s Chairman Barrie Levitt, granted Sun Pharma an option to acquire all their shares, including all of the founder’s shares.
After one year of signing the agreement, Taro last month unilaterally terminated the merger agreement.
In the meantime, Sun Pharma said it has filed an action in the Supreme Court of the State of New York against Taro and its full Board of Directors.
“The action asserting fraud claims against Taro and its Directors asks the Court to order the controlling shareholders to honor their promises under the Option Agreement,”
In addition, Sun also asked the court for an order declaring that the merger agreement was not properly terminated.
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First Published: Thu, Jun 26 2008. 01 33 PM IST