Sun Pharma gets US FTC nod for Taro open offer

Sun Pharmaceuticals today said it has got US Federal Trade Commission approval for the open offer made by it to shareholders of Israeli firm Taro.     

In a filing to the Bombay Stock Exchange, Sun Pharma said the US Federal Trade Commission (FTC) has granted early termination of the anti-trust waiting period for the previously announced tender offer by its subsidiary Alkaloida Chemical Company Exclusive Group Ltd.     

Last month the Mumbai-based firm had launched an open offer at a price of $7.75 per share to acquire all outstanding shares of Taro, including all of the founders' shares.     

The open offer, which opened on June 30, is scheduled to expire on September 2, 2008, unless the offer is extended, the filing said.     

Sun's open offer followed Taro's 'unilateral' termination of the $454 million merger agreement signed between the two firms.     

Greenhill & Co LLC is acting as the dealer manager and MacKenzie is acting as the Information Agent for the tender offer, the company said.     

Sun reiterated that Alkaloida exercised its option under the agreement, to acquire all the shares held by the controlling shareholders of Taro under the option agreement signed with Taro when the merger deal was struck last year.     

Merrill Lynch and Yigal Arnon & C and Skadden Slate Meagher & Flom LLP are assisting the Taro board in evaluating Sun's offer.     

Shares of Sun Pharma were trading at Rs 1,443, up by 0.44 per cent in the morning trade on the BSE.