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Sun Pharma - Taro acquisition

Sun–Taro acquisition: The stalemate continues

In line with the directive issued by the Israeli Supreme Court, Sun Pharmaceuticals (Sun Pharma) had sent a revised proposal to the promoters of Taro Pharmaceuticals (Taro) for the completion of its long-standing acquisition of Taro. In its proposal Sun Pharma had raised its offer price for Taro shares and outlined two options to buy out the remaining stake in Taro.

For the first option, Sun Pharma had offered to amend the original merger agreement to buy the Taro shares at $9.50 each instead of the earlier $7.75 per share, which would raise its acquisition cost by 23%. In addition, Sun Pharma would also end the tender offer.

For the second option, Sun Pharma had offered $9 per share for all shareholders other than Taro Chairman Barrie Levitt and $8.5 per share for the five million odd shares held by the promoter group, subject to Israeli Supreme Court’s withdrawal of the injunction on Sun Pharma’s open offer. The tender offer will close ten business days from the date of the increase in the offer price.