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Taro file lawsuits against Sun Pharma in Israel

The row between Sun Pharma and Israel's Taro Pharmaceutical has now reached court after the cancellation of $ 454 mn merger deal between the two.

Taro Pharmaceutical has taken the Mumbai-based firm to the court as it presses to go ahead with sale of its Irish operations and 'protect minority share holders' in the event of the former trying to gain voting rights through open market share purchase.

In a letter to its shareholders, Taro said it had filed two lawsuits in an Israeli court. One of them was filed on June 15 aimed at stopping Sun from “engaging in practices that we deemed detrimental to our ability to maximize the value of the Irish operations in a sale.”

The other lawsuit, filed on May 28, sought to 'protect' minority shareholder interests in case of Sun attempting to purchase Taro shares in an amount that would increase its voting powers to more than 45 per cent.

The letter said it has sought direction to ensure that “Sun comply with the Special Tender offer rules under Israeli law which provide important protections for minority shareholders.”

Source: Economic Times


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