The companies have been battling since Taro chairman Barrie Levitt unilaterally cancelled the company's takeover in May.
The Supreme Court yesterday gave Taro Pharmaceutical Industries Ltd. (Pink Sheets: TAROF) and Sun Pharmaceuticals Industries Ltd. (BSE: 524715) 30 days to reach a settlement in their legal battle over Sun's takeover of Taro. If the companies cannot settle, the court will decide the case.
In early 2007, Taro signed a takeover deal with Sun Pharmaceuticals at $7.75 per share, partly because of Taro's severe liquidity problems. Sun Pharmaceuticals also injected $60 million into Taro in a private placement. Taro investor Franklin Templeton Resources Inc. (NYSE:BEN) and other shareholders opposed the deal and attempted to block in court.
In May 2008, Taro chairman Dr. Barrie Levitt unilaterally cancelled Sun Pharmaceuticals' takeover of the company. Sun responded by exercising a clause in the original contract to acquire Taro founder shares at the same price as the ordinary shares, and Taro petitioned the courts against the move. In September, Taro appealed to the Supreme Court after the Tel Aviv District Court ruled in favor of Sun Pharmaceuticals and dismissed Taro's argument that Sun must make a special tender offer for the company's founding shares.
Taro closed at $9 yesterday.
Published by Globes [online], Israel business news - www.globes-online.com - on December 9, 2008
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