Taro Pharmaceuticals has rejected Sun Pharma's revised offer with two options to acquire 64 per cent shares of Taro and said it was willing to conduct a shareholders referendum only if Sun offered an acceptable price.
In a letter to Sun Pharma Chairman and Managing Director Dilip Sanghvi following Sun Pharma's public disclosure yesterday on its revised proposal, Taro Chairman Barrie Levitt said Sun's offer was less than even the price it paid for acquiring minority stake of Brandus Investment Partners at above $10 per share.
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If Sun Pharma offer received sufficient favourable votes to satisfy the requirements of approval or a merger, Taro would immediately enter into a merger agreement with Sun at the price specified by Sun in the shareholder referendum. If Taro shareholders reject Sun's merger price, Sun would agree to full standstill merger price, which involves no share purchases, proxy fights, or other shareholder proposals, for a period of three years, suggested Levitt.
He alleged that the disclosure by Sun was a public relations battle to posture itself advantageously in the eyes of the Israeli Supreme Court, and not in reaching a solution to the current impasse.