Sun Pharma extends offer for purchase of Taro shares by a month

Domestic pharmaceutical major Sun Pharmaceutical has extended the tender offer for the purchase of the shares of Israel’s Taro Pharmaceutical Industries by a month. The offer will now close on October 3, 2008.

The extension will enable the Indian major to comply with the order of Israel’s Supreme Court, which prohibited the closure of the offer until the Court decides upon an appeal petition on the Taro deal.

The Supreme Court of Israel had temporarily prohibited the closing of the offer until it issued a decision on the appeal of the litigation against Sun’s subsidiary Alkaloida and its affiliates by Taro and some of its directors regarding the applicability of the special tender offer rules under the Israeli Companies Law to the offer.

The Tel-Aviv District Court had earlier ruled in favour of Sun Pharma that a special tender offer was not required.

The Supreme Court’s order states that the appeal will be heard no later than December 15, 2008, but no briefing schedule has yet been set.