Taro Pharmaceuticals defends Sun deal to shareholder

By Lisa Kerner

Charlotte, N.C., July 16 - Taro Pharmaceuticals Industries Ltd. director Tal Levitt in a letter filed with the Securities and Exchange Commission defended the company's planned acquisition by Sun Pharmaceutical Industries Ltd.

The move by Levitt came in response to Templeton Asset Management Ltd. executive chairman Mark Mobius' July 11 letter to the Taro criticizing the deal.

On May 20, Taro agreed to be acquired by Sun Pharmaceutical Industries for $7.75 per share in cash in a deal valued at $454 million including the refinancing of about $224 million in net debt, a company news release stated.

Refusing to reply to each of Templeton's statements, Levitt reiterated that the company has not misled shareholders, nor has it provided Levitt, his family or Sun "with any improper information beyond that which is standard, customary and legally permissible." Levitt considers Mobius' public statements "libelous and actionable in a court of law."

"I understand that Templeton - like many of Taro's shareholders (including me and my family) - has experienced a considerable decline in value on its investment in Taro. However, by jeopardizing the Sun transaction and waging frivolous litigation against Taro, you are harming Taro and its shareholders - not helping them," Levitt's letter stated. The letter was included in a 6-K filing with the SEC.

According to Levitt, "Templeton, and only Templeton, wants to enjoy what it sees as the benefits of an investment in Taro at $6.00 per share." In addition, the Sun merger price of $7.75 per share was the "culmination of an extensive and exhaustive process conducted by the Blackstone Group.

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

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