The politicians are starting to intervene in the in on the dispute between Taro Pharmaceutical Industries Ltd. (Pink Sheets: TAROF) and India's Sun Pharmaceuticals Ltd. (BSE: 524715) over Sun's acquisition of Taro. Haifa Mayor Yona Yahav wrote to Minister of Industry, Trade and Labor Eli Yishai that the sale of Taro would cost 650 jobs in Israel.
In a letter dated July 16, Yahav wrote, "Reading the details of the agreement signed can lead to the conclusion that Sun plans to close production in Israel after the sale, and transfer it to India. I ask you to review how your ministry and the Israeli government can save the workers."
Yahav added, "Is it possible that after the huge investment by the Israeli government, it will allow a foreign buyer to acquire the know-how and production lines and transfer them from Israel, leaving the workers and their families behind?"
The merger agreement between Sun Pharmaceuticals and Taro was signed in May 2007. Taro minority shareholders opposed the agreement, filing court petitions against it, which are still pending. In May 2008, Taro chairman Barrie Levitt unilaterally cancelled the agreement, and Sun retaliated by invoking a clause in the original agreement to buy Taro's founding shares.
Published by Globes [online], Israel business news - www.globes-online.com - on July 29, 2008
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