Sun Pharmaceutical extends tender offer for Taro to comply with court order

By Lisa Kerner

Charlotte, N.C., Nov. 7 - Sun Pharmaceutical Industries Ltd. subsidiary Alkaloida Chemical Co. Exclusive Group Ltd. extended the expiration date of its tender offer for the outstanding ordinary shares of Taro Pharmaceutical Industries Ltd. to 5 p.m. ET on Dec. 19 from Nov. 7.

This latest extension puts Sun in compliance with a continuing order issued by the Supreme Court of Israel temporarily prohibiting the closing of the offer until the court issues a decision on an appeal by Taro, Sun said.

According to a Sun news release, the Supreme Court will hear oral arguments on the appeal on Dec. 8.

It was previously reported that the Tel-Aviv District Court ruled in favor of Sun that a special tender offer was not required. Taro had filed an action seeking a declaratory ruling that should Sun attempt to purchase Taro shares in an amount that would increase its voting power to more than 45%, it must comply with the special tender offer rules under Israeli law that protect minority shareholders.

Sun has extended the expiration date of its tender offer for Taro several times, most recently to Nov. 7 from Oct. 3. The tender offer began June 30.

In May 2007, Taro agreed to be acquired by Sun in a deal valued at $454 million including the refinancing of about $224 million in net debt. The deal was terminated by Taro approximately one year later.

Dealer manager for Sun's offer is Greenhill & Co., LLC. MacKenzie Partners, Inc. is the information agent.

Taro is a pharmaceutical company with offices in Israel and Hawthorne, N.Y.

Mumbai, India-based Sun makes specialty pharmaceuticals and active pharmaceutical ingredients.

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