Sun extends tender offer for Taro till Jan 9

Sun Pharmaceutical Industries, which is attempting to take over Israeli drug major Taro Pharmaceuticals, has announced to extend the tender offer for the purchase of all outstanding shares of Taro to January 9. The offer was scheduled to expire today.

The tender offer was extended to comply with an earlier directive of the Supreme Court of Israel, which temporarily prohibited the closing of the offer, till the court decides regarding the applicability of the special tender offer rules under the Israeli Companies Law.

This directive was in response to an appeal against Sun's subsidiary Alkaloida and its affiliates by Taro and some of its directors. A Tel-Aviv District Court had previously ruled in favour of Sun Pharma that a special tender offer was not required.

On December 8, the Supreme Court instructed the parties to negotiate with one another with the view to reaching a settlement to resolve the dispute and to update the Supreme Court within 30 days.

"Sun has been engaging in discussions pursuant to the Supreme Court’s instructions," said a company release. Alkaloida exercised its options to acquire shares of Taro from the controlling shareholders on June 25, 2008, based on an Option Agreement, which was part of an aborted merger deal, planned almost two years ago.