Templeton continues to invest in Taro; Sun extends tender

By Lisa Kerner

Charlotte, N.C., July 10 - Taro Pharmaceutical Industries Ltd. investor Templeton Asset Management Ltd. bought 8,930 shares of the company's stock between May 28 and June 19.

According to a schedule 13D filed with the Securities and Exchange Commission, the shares were priced from $8.45 to $9.00 each.

Templeton beneficially owns 3,940,212 shares or 10% of Taro.

It was previously reported that like Taro, Templeton rejected Sun Pharmaceutical Industries Ltd.'s $7.75-per-share offer for Taro.

Templeton believes the offer, made 12 months ago, undervalues the company, executive chairman Mark Mobius said in a prior news release.

Mobius cited Taro's product pipeline, reported operational turnaround and earnings improvement, as well as the opinions of two proxy advisory firms.

It was previously reported that Taro agreed in May 2007 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. Taro then terminated the deal on May 28.

Meanwhile Sun extended its tender for Sun to 5 p.m. ET on Sept. 2 from midnight ET on July 28.

As of 5 p.m. ET on July 11, 700 shares had been tendered, Sun said.

Sun noted that the extension of the tender had been recommended by the judge Michal Agmon-Gonen J. of the Tel-Aviv District Court in order to allow the court to rule on the merits of the litigation commenced against Alkaloida and its affiliates by Taro and certain of its directors regarding the applicability of the special tender offer rules under the Israeli Companies Law to the offer.

Templeton is a wholly owned subsidiary of Franklin Resources, Inc., a global investment management organization operating as Franklin Templeton Investments.

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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