MUMBAI - Sun Pharmaceutical has extended the last date of its tender offer for purchase of outstanding ordinary shares of Taro to Oct. 3, from the previously fixed date of Sept. 3. Sun had to extend the last date to comply with an order by the Supreme Court of Israel temporarily prohibiting the closing of the offer. The tender offer will be valid until the new date unless further extended or earlier terminated.

The Israeli Supreme Court will now issue a decision on the appeal of the litigation commenced against Sun's subsidiary Alkaloida by Taro and a few of its directors regarding the applicability of the special tender offer rules under the Israeli Companies Law. Sun has been struggling to gain control of Taro after its board of directors decided to call off a merger deal between the companies that was struck more than a year ago.

The Tel Aviv District Court had earlier ruled that a Special Tender Offer to gain control of Taro was not required. (Also see "Advantage Sun Pharma As Tel Aviv Court Rules Out Special Tender Offer For Taro Shares" - Scrip, 27 August, 2008.). The Israeli Supreme Court in its order states that the appeal will be heard no later than Dec.15, but no briefing schedule has yet been set, Sun said in a statement.

"If the temporary order remains in effect and the Supreme Court does not decide on the appeal by Oct. 3, Sun will further extend the offer while the temporary order remains outstanding," Sun added.

Sun had commenced the tender offer on June 30 to adhere to the terms of the Option Agreement between Alkaloida and the controlling shareholders of Taro. Subsequently, Alkaloida exercised its options to acquire shares of Taro on June 25, at $7.75 per share (Also see "Sun Clears FTC Hurdle For Taro Acquisition; Sells Carbamezapine To Fellow Indian Co. Torrent" - Scrip, 14 August, 2008.).

Sun is also fighting a separate case against Taro at the Supreme Court of New York alleging that Taro promoters had fraudulently backed out from a merger deal that was agreed upon in 2007.

- Vikas Dandekar (v.dandekar@elsevier.com)

Israeli Supreme Court Directs Sun Pharma To Extend Tender Offer Deadline For Taro

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