Taro Board rejects Sun Pharma offer for complete acquisition

Company had offered to buy all of the issued and outstanding shares of Taro Pharmaceuticals

Israel based Taro Pharmaceutical Industries today said a special committee of its board has rejected an offer from Sun Pharmaceutical Industries to purchase its issued and outstanding shares not held by the Indian pharma firm due to inadequate price.

"Special Committee of Board of Directors unanimously rejected the October 18, 2011 unsolicited, non-binding offer from Sun Pharmaceutical Industries to purchase all of the issued and outstanding shares of Taro not currently held by Sun Pharma for $24.50 per share as inadequate and not in the best interests of Taro's minority shareholders," Taro Pharmaceutical Industries said in a statement on its website.

A Sun Pharma spokesperson said that the company would not like to offer any comment.

Sun Pharma had proposed to fully acquire Taro with an offer to purchase all the outstanding shares of the Israeli firm that would have entailed an outgo of $367.5 million (over Rs 1,810 crore).

Sun Pharma, which holds 66.5% stake in Taro, had said it was proposing to acquire 15 million outstanding shares at a price of $24.50 per share.

Sun Pharma had acquired a controlling stake in Taro in September, 2010.