Softening its stance for acquiring the shares of Israel-based Taro Pharmaceutical, Sun Pharma today said it would offer a premium price over the current market rates for the scrip and has also agreed to resolve the issue with Taro, as recommended by the Israeli Supreme Court.
"We are open to discuss... Both proposals -- to offer an excellent solution to this dispute and offer a significant premium to the public shareholders over the current market prices," Sun Pharmaceutical Industries Chairman Dilip Shanghvi said in a letter to the Taro Board of Directors.
In May last year, Taro had unilaterally terminated $454-million merger agreement signed between Taro and Sun Pharma in 2007, citing undervaluations of its shares. Thereafter, both companies had filed suits against each other in Israel and New York.
Pursuant to the litigation, Sun Pharma had also launched an open offer at $7.75 per share to acquire additional stake in the company, which was again challenged in the Israeli Supreme Court.
The Israeli court has suggested that both parties try to solve the issues through negotiations, while barring Sun Pharma from closing the open offer.
