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Sun Pharmaceutical further extends tender offer for Taro; companies agree to mediation
By Angela McDaniels
Tacoma, Wash., Jan. 29 - Sun Pharmaceutical Industries Ltd. subsidiary Alkaloida Chemical Co. Exclusive Group Ltd. extended the expiration date of its $7.75-per-share tender offer for the outstanding ordinary shares of Taro Pharmaceutical Industries Ltd. to 5 p.m. ET on March 6 from Jan. 30.
As of 5 p.m. ET on Jan. 28, holders had tendered 28,713 ordinary shares.
The extension keeps Sun in compliance with a continuing order issued by the Supreme Court of Israel temporarily prohibiting the closing of the offer until the Supreme Court issues a decision on the appeal by Taro, Sun said.
It was previously reported that the Tel-Aviv District Court ruled in favor of Sun that a special tender offer was not required.
At the recommendation of the Supreme Court, the companies agreed on Monday to a mediation process to attempt to resolve the dispute. If no agreement is reached, any party may then request the Supreme Court to issue its judgment, according to a Sun news release.
Taro agreed in May 2007 to be acquired by Sun for $7.75 per share. Taro then terminated the merger agreement in May 2008, calling the agreement "stale." Sun offered to increase the price to $10.25 per share, which Taro rejected as inadequate.
Sun then said Taro was not entitled to terminate the merger. It exercised some options to acquire shares of Taro from the company's controlling shareholders on June 25, 2008 and began the tender offer on June 30, 2008. It has since been extended several times.
Dealer manager for Sun's offer is Greenhill & Co., LLC. MacKenzie Partners, Inc. is the information agent.
Taro is a pharmaceutical company with offices in Israel and Hawthorne, N.Y.
Mumbai, India-based Sun makes specialty pharmaceuticals and active pharmaceutical ingredients.
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