Sun Pharmaceutical extends offer for Taro

By Lisa Kerner

Charlotte, N.C., April 3 - 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 April 17 from April 3.

The offer had previously been extended to April 3 from March 20.

As of 5 p.m. ET on Thursday, holders had tendered 25,617 ordinary shares, according to Sun.

Sun said the extension keeps it 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.

As previously reported, the Tel-Aviv District Court ruled in favor of Sun that a special tender offer was not required.

If the temporary order remains in effect on April 17, Sun said it expects to once again extend the offer.

Sun and Taro had participated in a mediation process at the Supreme Court's recommendation.

Taro agreed in May 2007 to be acquired by Sun for $7.75 per share and then terminated the merger agreement in May 2008. Sun offered to increase the price to $10.25 per share, which Taro rejected.

According to Sun, Taro was not entitled to terminate the merger.

Sun 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, extending the deadline several times.

The 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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