Sun Pharmaceuticals refuses Taro’s $15 a share offer

Sun Pharmaceuticals has sent a letter to the stock exchange, rejecting the offer put forth by Taro proposing $15 a share in the tender offer. In a letter, in what has now become routine, Sun Pharmaceuticals rejects the referendum proposal. It also addresses Taro’s latest offer of taking the merger price up to $15 a share.

Sun’s letter says: “Taro board knows that its proposal of USD 15 a share is way beyond what the company is worth with no audited numbers for 3 years and with prior year restated numbers to be further restated. The fact that the Board sent such a proposal knowing that Sun Pharma can never agree to it, is further confirmation that the Taro directors are only rubber stamping outrageous proposals that are convenient solely to the Levitt/Moros family, but do not have any concern for minority shareholders.”

It then notes that today is the last day of the 30-day period set by the Israeli Supreme Court. It also rejects the second proposal while reiterating that there has been no agreement, towards confidentiality of the discussions or proposals. With this letter, it would appear that, barring a last-ditch effort, the issue will be settled in the courts.

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