Founders of Taro Pharmaceutical will be compelled to tender their shares to Sun Pharmaceutical, India's largest pharma company by market capitalisation, in its bid for a hostile takeover of the Israeli firm, thanks to a clause in the agreement reached between the companies earlier.

<tr><td><p class='TableClas'></p><P class='TableClas'> <DIV CLASS=rightDiv><script language="JavaScript">
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		<script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js">
		</script> </DIV><p class='TableClas'>According to the option agreement reached between Taro's promoter family-owned Taro Development Corporation (TDC) and Sun Pharma's Hungarian subsidiary, Alkaloida Chemical Company, the Israeli owners will have to tender their 12 per cent stake to the Sun Pharma unit in the event merger fails. 
</p><p class='TableClas'>The option agreement was formed as part of the merger discussions. Sun's immediate cash infusion of $40 million in Taro 

Option pact to help Sun acquire Taro

HOSTILE TAKEOVER

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