Templeton Asset Management Ltd. has apparently reversed its position after two and a half years in the battle for control at Taro Pharmaceutical Industries Ltd. (Pink Sheets: TAROF). The US equity fund, which has opposed the sale of the company to India's Sun Pharmaceutical Industries Ltd. (BSE: 524715), has decided to withdraw from Taro's appeal against Sun filed with the Supreme Court.
Templeton owns 10% of Taro. After Taro unilaterally cancelled the sale to Sun Pharmaceutical, Templeton supported Taro's controlling shareholder chairman Dr. Barrie Levitt, and demanded that Sun Pharmaceutical improve its special offer to purchase and not simply make a regular offer.
Now, for the first time since the battle was joined, Templeton has switched sides, and supports Sun Pharmaceutical's acquisition of the controlling interest in Taro. Templeton's statement to the Supreme Court states, "Taro's condition continues to deteriorate in terms of proper corporate governance… Under these circumstances, Templeton believes that it must act without delay to enable Taro to emerge from the situation in which it has found itself by removing the barriers for the transfer of control in Taro, for the good of all shareholders."
Templeton was referring to the fact that Taro has not published audited financial reports for several years. Templeton added, "The public must rely on press releases by Taro, which have already been shown to be unreliable."
Taro's share opened at $9.30 today.
Published by Globes [online], Israel business news - www.globes-online.com - on November 30, 2009
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