Sun Pharma arm exercises option to buy more Taro Pharma shares

[K.Karthik Raja]

Sun Pharma arm exercises option to buy more Taro Pharma shares
Thursday, Jun 26

MUMBAI - Sun Pharmaceutical Industries Ltd today said its
subsidiary has exercised the option to acquire all shares held by
controlling shareholders of Israel-based Taro Pharmaceuticals
Industries Ltd.
In May 2007, a Sun Pharma subsidiary had entered into a merger
agreement with Taro Pharma.
According to the merger pact, Sun Pharma had the option to acquire
shares in
Taro Pharma in the event of the merger not being consummated.
In May 2008, Taro Pharma had terminated the merger agreement.
Sun Pharma will in the next few days commence a tender offer for
all ordinary shares as required by the option agreement at $7.75 a
share, a Sun Pharma release said.
"We will do everything required to preserve our rights. We have
had
enough of the delays, excuses, and misrepresentations by the board of
Taro,"
Dilip Shanghvi, chairman and managing director, Sun Pharma, said in
the release.
Sun Pharma today filed fraud claims in the Supreme Court of the
State of New York against Taro Pharma and its full board of directors.
Sun Pharma has asked the court to order controlling shareholders
of Taro Pharma to honour their promises under the option agreement.
It has also asked for an order declaring that the merger agreement
was not properly terminated, the release said.
At 9:59AM, Sun Pharma shares were at 1,300.90 rupees on the
National Stock Exchange, down 0.1% from Wednesday. End