Sun Pharmaceutical has managed to gain more support in its battle to acquire Israel-based Taro Pharmaceuticals.
The Indian drugmaker sent a notification to Bombay Stock Exchange informing that RiskMetrics Group's (RMG) ISS Governance Services Industries voted in favour of Sun Pharmaceutical. The independent proxy advisory firm has released a report advising Taro’s shareholders against re-electing the existing directors during the upcoming Annual General Meeting on December 21, 2009.
Sun Pharma said in the release that as per ISS Governance Services Industries report Taro Pharma has not been able to rectify its continuing problems. “RMG now recommends that shareholders reject the entire slate of management candidates," said the report. RMG also pointed out that Taro management has failed to produce audited financials for the past six years
This is the third such report by an independent proxy advisory firm to recommend Taro shareholders vote against existing board as well as Taro's indemnification proposal for its proposed external directors. Glass Lewis and PROXY Governance recently issued reports that held similar views.
Sun Pharmaceutical’s share rose Rs 1.50. or 0.10 per cent. The share was trading at Rs 1539.50 on Bombay Stock Exchange during the market hours.