Sun Pharma asks Taro board to stop supporting Levitt

NEW DELHI: Sun Pharma has written to the board of Israeli company Taro to stop supporting the Levitt family who has been opposing the acquisition of the company by the Indian company, after over two-third of its minority shareholders voted against the continuation of the Levitt family and its nominess in the board last month.

At the AGM on December 31, about 78% of the Taro’s minority shareholders, who own about 35% of the company’s stake, voted against the re-election of the existing directors. But the Indian pharma company failed to dislodge the Levitt family and its nominees from the board because the owners (Levitt family) has one-third voting power despite owning just 11% of Taro’s equity. Sun now holds 42%, while Templeton Asset Management with 12% stake, has reversed its stand to support the Indian firm.

In an open letter, Dilip Shanghvi CMD at Sun Pharma told the board members that the ongoing litigation against Sun was to prevent the Levitt family from selling their shares to Sun Pharma and is not in the interests of the ‘silent minority shareholders.’

“In light of these results, and with any residual sense of your fiduciary duties as directors, we expect that you will now reconsider and reverse your position regarding these actions,“ Mr Shanghvi added, pointing that continuing support to the Levitt family is a breach of their duties. He also said Sun Pharma will take legal action if the Levitt family tried to reward the board members for supporting the family.