Sun gets the support of RMG in takeover battle against Taro

NEW DELHI: Sun Pharma on Thursday got another shot in the arm in its takeover battle against drug firm Taro, with proxy advisory firm RiskMetrics Group asking shareholders of Israeli company to vote against the re-election of directors in the upcoming annual general meeting.

Quoting a report by RiskMetrics, Sun Pharma said, "... With little indication that the company has moved to rectify its continuing problems, and with little information disclosed on the process of solving these problems, RMG now recommends that shareholders reject entire slate of management candidates."

This is the third report by an independent proxy firm which asked Taro shareholders to vote against Taro's board of director and their indemnification proposal.

Earlier, two independent proxy advisory firms Glass Lewis and Proxy Governance had also issued reports advising Taro shareholders to hold board accountable for its actions and vote against all the proposal made by them.

Proxy advisory firms in US offers consultancy services on corporate shareholders voting.

Sun Pharma is locked in a takeover battle with Taro after their $454-million merger deal, signed in 2007, collapsed a year later due to the unilateral termination of the agreement by the Israeli firm.