Taro confident of winning case against Sun
Sounding confident of winning the court case against Sun Pharmaceuticals, Israel-based drug firm Taro Pharmaceutical on Monday asked its shareholders to not to participate in the open offer launched by the Indian firm.
By PTI |
NEW DELHI: Sounding confident of winning the court case against Sun Pharmaceuticals, Israel-based drug firm Taro Pharmaceutical on Monday asked its shareholders to not to participate in the open offer launched by the Indian firm.
"Sun has extended the expiration date of its tender offer until September 2, by which date the court in Tel-Aviv has indicated it will rule on our claim that Sun's tender offer is illegal under Israeli law," Taro Pharmaceuticals Chairman of the Board and Managing Director Barrie Levitt said in a letter to its share holders.
"This development significantly extends the timeframe originally contemplated by Sun by which it could close its offer and provides you with more time to decide whether it is prudent to tender your shares," he added.
Earlier, Sun Pharma had extended the closing date of open offer made by its subsidiary, Alkalodia Chemical to September 2.
Levitt said Sun's offer of USD 7.75 per share undervalued Taro and was significantly below the present trading price.
"Sun's offer of USD 7.75 per share is significantly below the price at which our shares are trading today, which is at a 52-week high, and even further below the price that Sun paid to get blocks of Taro shares in recent private transactions with investors," he said.
Taro Pharmaceutical has reported net sales of 88 million dollar in the quarter ended on June 30, 2008. The company has also reported a net profit after tax of 20 million dollars in the first half of the current year.
Taro also asked its shareholder to reject the unsolicited tender offer from Sun and not tender their shares to Sun pursuant to that offer.
"Sun has extended the expiration date of its tender offer until September 2, by which date the court in Tel-Aviv has indicated it will rule on our claim that Sun's tender offer is illegal under Israeli law," Taro Pharmaceuticals Chairman of the Board and Managing Director Barrie Levitt said in a letter to its share holders.
"This development significantly extends the timeframe originally contemplated by Sun by which it could close its offer and provides you with more time to decide whether it is prudent to tender your shares," he added.
Earlier, Sun Pharma had extended the closing date of open offer made by its subsidiary, Alkalodia Chemical to September 2.
Levitt said Sun's offer of USD 7.75 per share undervalued Taro and was significantly below the present trading price.
"Sun's offer of USD 7.75 per share is significantly below the price at which our shares are trading today, which is at a 52-week high, and even further below the price that Sun paid to get blocks of Taro shares in recent private transactions with investors," he said.
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He said considering the performance year to date and outlook of Taro the Sun offer deprived shareholders of Taro what "we believe your shares are worth". Taro Pharmaceutical has reported net sales of 88 million dollar in the quarter ended on June 30, 2008. The company has also reported a net profit after tax of 20 million dollars in the first half of the current year.
Taro also asked its shareholder to reject the unsolicited tender offer from Sun and not tender their shares to Sun pursuant to that offer.
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