Raging Capital, the investor which holds five per cent in Taro Pharma, has again asked the company board to reject Sun Pharma's offer for remaining stake in Taro.
Sun Pharma, which holds 66 per cent stake in Taro, had offered a price of $24.50 per share for the remaining Taro Pharma stake last year. Minority investors such as Grand Slam Asset Management and Raging Capital Management LLC had opposed the offer.
Raging Capital wrote a letter to Taro's Board of Directors last year, expressing concerns regarding the proposal of Sun Pharma. In its earlier mail to Taro Board, William C Martin, chairman and chief investment officer, Raging Capital Management, LLC, demanded a price of $71.9 per share. Grand Slam had demanded a minimum price of $48.5 per Taro share.
On January 12, 2012, Taro announced that the Special Committee is still evaluating Sun Pharma's acquisition proposal, and the company is committed to protect the interests of minority shareholders.
"We find these assertions to be disingenuous and mere window-dressing by a board whose actions suggest that it is focused on advancing Sun Pharma's interests at the expense of minority shareholders," William Martin wrote in his letter. "We call upon the Special Committee to immediately reject the acquisition proposal. If necessary, we will hold each of you personally accountable and liable to the fullest of our abilities," he wrote.
After the three-year-long legal battle, Sun had completed the acquisition of controlling stake in the Israeli company in September 2010.