The Tel Aviv District Court will hear Franklin Templeton Resources Inc.’s (NYSE:BEN) petition against the acquisition of Taro Pharmaceutical Industries Ltd. (Pink Sheets: TAROF.PK) by India’s Sun Pharmaceuticals Industries Ltd. (BSE: 524715) on September 19, two month’s after the Taro general shareholders’ meeting to approve the deal, which will be held on July 23. The hearing was postponed from July 5 when Judge Drora Pilpel recused herself and Judge Nurit Ahituv said that the original date was unsuitable for her.
Templeton owns 9.5% of Taro through Franklin Advisers Inc. and Templeton Assets Management Ltd. In early May, it sued Taro and its executives for allegedly acting in a way that was liable to drive the company into insolvency and trampling the rights of minority shareholders in their attempt to sell the company. Templeton asked the Tel Aviv District Court for an injunction against the sale and for the appointment of a special manager on its behalf for the company. The court refused to issue the injunction.
In a hearing on May 20-21, Judge Pilpel set a July 5 date to hear the parties’ main arguments. However, she later recused herself claiming a conflicting family engagement. Judge Ahituv set the new date two months after Taro’s shareholders are due to approve the sale of the company.
The question now is whether there is any point to such a hearing and whether any decision reached will have any relevance. On the face of, the answer is no. It is hard to imagine Templeton conceding the point, but the court has meanwhile set the September date.
Published by Globes [online], Israel business news - www.globes.co.il - on July 3, 2007
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