Taro's bid will be exacting: Analysts

MUMBAI: Sun Pharmaceuticals��� decision to launch a hostile bid for Israel���s Taro Pharma may consume time as well as money as both companies are involved in legal battle over various issues, industry analyst feel. ���There is no doubt that Sun has a strong case to fight for.

But the litigation process is going to be a painful and a long one. Moreover, Sun has to take the investors into confidence���, says Kotak Private Equity Group CEO Nitin Deshmukh.

However, Fidelity International MD Jasmin Patel said, ���Though it may consume time and money, my impression is that Sun will aggressively go after acquiring Taro.��� Sun Pharma and Taro Pharmaceuticals are already been involved in a legal battle on the sale of Taro���s Irish plant. Besides, On Wednesday, Sun filed another action case against the promoters of Taro in the US court.

Majumdar & Co managing partner Akhil Hirani says, ���As per my understanding, Israeli laws allow foreign firm to launch hostile bids. However, it will be a long-drawn process. Since the companies are already involved in legal battle, the issue will be more complex.���

���While the litigation continues, it will be difficult for Sun to get the shares from Taro���s promoters. It is unlikely that Sun will be able to acquire the shares anytime soon,��� says Edelweiss analyst Amod Karanjikar.