Mumbai: Sun Pharmaceuticals Industries Ltd chairman and managing director Dilip Shangvi has on Monday written to directors of its acquisition target Taro Pharmaceuticals Industries Ltd that their continued support and campaign for Taro promoters are against the interests of minority shareholders, and doing this by accepting funds from Taro will attract legal action.”
The outcome of the 31 December annual general meeting of Taro showed that over 75% of votes cast by its shareholders who are not aligned with the Levitt family or with Sun have rejected the continuing control of the Levitt family and their designees to Taro’s board of directors” he wrote in the letter.
“So it’s now clear that an overwhelming majority of Taro’s public shareholders demand a change in the control of Taro and the composition of its board of directors. But, the directors’ repeated claims that they will initiate and continue to maintain the ongoing legal proceedings against Sun in order to protect this minority are completely untenable,” he said.
Taro spokesperson, Peter Hill had last week confirmed to Mint that the Tel Aviv district had on 3 January dismissed a court case filed by Sun Pharma challenging the outcome of Taro AGM, after Sun failed to dislodge the existing board of the company despite support from minority shareholders. Shangvi said in his letter that in light of these results, and with any residual sense of your fiduciary duties as directors, we expect that you will now reconsider and reverse your position regarding these actions.
“Failing to do so, and continuing to provide active support, with funding from Taro, to the Levitt family in its attempt to avoid its contractual obligations towards us, will constitute a further breach of your fiduciary duties to Taro as well as its shareholders. Please be advised that we will take all necessary legal action to reverse the cynical attempt by the Levitt family to reward you, again with the funds,” the letter warned.