Taro ends deal with Sun Pharmaceutical

By Lisa Kerner

Charlotte, N.C., May 28 - Taro Pharmaceutical Industries Ltd.'s board of directors unanimously voted to terminate its May 18, 2007 merger agreement with Aditya Acquisition Co. Ltd., a subsidiary of Sun Pharmaceutical Industries Ltd.

As already reported, Taro agreed to be acquired by Sun for $7.75 per share in cash in a deal valued at $454 million including the refinancing of about $224 million in net debt.

Either party could terminate the agreement after Dec. 31, a Taro news release said.

According to Taro, the agreement had become "stale" and does not reflect the "dramatic operational and financial turnaround" achieved by the company.

Sun's offer to raise the offer to $10.25 per share was also considered inadequate by Taro's board.

Taro is a pharmaceutical company with offices in Israel and Hawthorne, N.Y.

Mumbai-based Sun makes specialty pharmaceuticals and active pharmaceutical ingredients.

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