Mumbai: Sun Pharmaceutical Industries Ltd on Wednesday rejected a counter-proposal by Israel’s Taro Pharmaceutical Industries Ltd seeking $15 (Rs729) per share to close a merger deal, saying the price is 83% higher than the current market price.
Taro’s top executive had on Tuesday written to Sun Pharma demanding a revision of the Indian company’s 2 January offer of $9-9.5 per share.
Sun also said it had extended the last date of the tender offer for the purchase of all outstanding ordinary shares in Taro Pharmaceutical Industries till 30 January.
The tender offer was extended to comply with an order issued by the Supreme Court of Israel temporarily prohibiting the closing of the offer. The directive will be effective until further orders on the appeal of litigation commenced against its subsidiary Alkaloida by Taro on the applicability of the special tender offer.
Sun also informed the Supreme Court of Israel that although it had been engaged in discussions, as instructed by the court, to reach a settlement over the dispute, those negotiations had been unsuccessful. Sun said it is awaiting a decision by the court. The tender offer commenced on 30 June in compliance with the terms of an option agreement between Sun and controlling shareholders of Taro.
Sun Pharma had on Tuesday said the board of the Israeli drug maker was trying to “sidestep” real issues by calling for a referendum.
PTI contributed to this story.