Sun Pharma up on Templeton’s Taro stand

Sun Pharma up on Templeton’s Taro stand
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First Published: Tue, Dec 01 2009. 10 27 PM IST
Updated: Tue, Dec 01 2009. 10 27 PM IST
Mumbai: Shares of Sun Pharmaceutical Industries Ltd jumped 5.62% on Tuesday on media reports that Templeton Asset Management Ltd, a key investor in Israel’s Taro Pharmaceutical Industries Ltd, no longer has any objection to the Indian company buying Taro.
Sun Pharma’s shares closed at Rs1,538 .80 on the Bombay Stock Exchange, while the Sensex closed 1.61% higher at 17,198.27.
Israeli business newspaper Glob reported on Tuesday that Templeton has reversed its position two-and-a-half years after a battle between Sun Pharma and Taro started. Sun Pharma currently holds a 36% stake in Taro; Templeton owns 10%. Templeton, which opposed the sale, has decided to withdraw from Taro’s appeal against Sun Pharma that was filed with the supreme court of Israel, the report said.
A Sun Pharma spokesman declined to comment as the matter is in court. An emailed query Templeton on Tuesday remained unanswered at press time.
Sun Pharma and Taro are fighting a lawsuit after Taro’s management and its controlling shareholder and chairman Barrie Levitt opposed an open offer by Sun Pharma in the US to acquire a controlling stake. Sun Pharma made the open offer after Taro’s management cancelled a 2007 merger deal it had signed with the Indian firm. After Taro’s termination of the merger agreement in May 2008, Templeton supported Levitt.
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First Published: Tue, Dec 01 2009. 10 27 PM IST