Templeton opposes Sun deal with Taro

Franklin Templeton Chairman Mark Mobius has opposed Sun Pharma's $454 million acquisition of Israel's Taro Pharmaceutical.

In a filing with the Securities and Exchange Commission, Templeton, which holds a 9 per cent stake in Taro, said that Sun's offer of $7.75 a share is too low and unjust to the minority shareholders of Taro.

In a letter to Taro, Mobius said the company should cancel the deal with Sun and reveal critical information regarding the financial status of the company to all its shareholders.

Templeton also sought a temporary injunction in a Tel-Aviv district court to prevent Taro from entering into the transaction.

It also filed a motion for the appointment of a special interim manager to review the company's efforts to identify an appropriate transaction.

The court will hear the petition on September 19, two months after the Taro general shareholders' meeting to approve the deal, which will be held on July 23.

It also alleged that Taro and its executives are acting in a way that is liable to drive the company into insolvency.

Earlier, Brandes Investment Partners, the second-largest shareholder in Taro, had indicated that it plans to vote against the Sun acquisition.