: Israeli drug firm Taro, which is fighting a takeover battle with Mumbai-based Sun Pharma, today said that the Supreme Court of Israel has debarred the Indian firm from acquiring further stake in the company.
"(The) Supreme Court of the State of Israel has ruled that Sun Pharmaceutical Industries Ltd ("Sun") may not exercise a warrant to purchase additional Taro shares while a previously ordered temporary injunction remains in effect," Taro Pharmaceutical said in a statement.
Sun Pharma is the single largest shareholder in Taro with 36 per cent stake and it has been trying to take control of the company ever since their USD 454-million merger deal of 2007 was unilaterally terminated by the Israeli firm a year later. After this both companies had filed cases against each other and the matter is pending in the Supreme Court.
Sun Pharma had launched an open offer for acquiring additional shares of Taro in 2008. The open offer was challenged in the Supreme Court, which prohibited the Mumbai-based company from closing the offer until the court gives a ruling in other cases related to takeover.
Taro said, In December 2009, Sun attempted to exercise a warrant to purchase approximately 3.7 million additional Taro shares at a price of USD 6 per share.
Taro alleged that the purchase of share through warrants was violation of the court order, which is to maintain status quo.
First Published: Thursday, February 4, 2010, 19:50