Taro sues Sun Pharma for thwarting unit sale plans

Taro Ireland, which manufactures injectables, owns a multi-purpose pharmaceutical manufacturing and research facility in Roscrea, which it acquired a few years ago.  A Sun Pharma spokesperson declined to comment. "We will inform the public and our shareholders at the appropriate time about our actions," he said.  Last month, Taro had backtracked from an over-a-year-old merger deal with Sun Pharma, citing the takeover offer made a year ago had become stale and the company had turned around to post good results within a year of the agreement. Following this, both companies had accused each other publicly and Sun Pharma had threatened to sue Taro for invalidating the deal worth $460 million. Sun Pharma is the largest shareholder in Taro with a 34.4 per cent stake.  The Taro chairman said Sun Pharma had persisted in its opposition to the Ireland sale and threatened to place advertisements in the Irish press opposing it, though the merger agreement was terminated.  Meanwhile, Taro said Sun was free to submit an offer to purchase the Irish operations if it wishes so. Sun Pharma claimed to oppose Taro's move to sell off its loss-making Irish unit mainly on concerns regarding the sale process, real estate value and saying the agreement in principle that Taro had reached with the buyers significantly had undervalued the Irish operations.  "The Taro shareholders should oppose any plans to sell the assets, in the wake of current developments and the fact that the potential buyers have close ties with Taro's senior management," Sun said.