The struggle for control of Taro Pharmaceutical Industries Ltd. (Pink Sheets: TAROF) between chairman Barrie Levitt and India's Sun Pharmaceuticals Industries Ltd. (BSE: 524715) continues to keep Israel's courts busy. The Tel Aviv District Court yesterday issued a temporary injunction to cancel a Taro shareholders meeting previously scheduled for September 13 in Haifa. The court issued the injunction at the request of Sun Pharmaceuticals and its subsidiary, Alkaloida Chemical Company Exclusive Group Ltd.
Taro added that a shareholders meeting called for today will be held as scheduled.
Sun Pharmaceuticals asked for the injunction to prevent Taro’s shareholders from considering the proposed resolutions regarding indemnification until 21 days from the date on which Taro makes available to Sun certain minutes of board of directors meetings and related items described in the court’s decision.
Judge Yehuda Zefet ruled that Sun Pharmaceuticals has the right to receive the documents it requested before Taro holds the shareholders meeting, and he also charged Taro NIS 20,000 in legal fees.
Taro has not published audited quarterly or annual financial reports for 2006-08 because it has to correct reports from previous years. In addition, Franklin Resources Inc., which owns 13.1% of Taro, requested the company to update the shareholders at the meeting.
Taro said that will announce the date of a new shareholders meeting shortly.
Taro's share closed at $9.20 in New York yesterday, giving a market cap of $363 million. Sun Pharmaceuticals owns 35% of Taro, and 23.5% of the voting rights. The two companies have been embattled ever since Levitt unilaterally abrogated the contract for the sale of the company to Sun.
Published by Globes [online], Israel business news - www.globes-online.com - on September 14, 2009
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