Once again, Taro Pharmaceutical Industries ($TARO) has rejected a buyout bid from fellow genericsmaker Sun Pharma. Once again, Taro says the offer is far below what it's worth. And once again, Sun says it will stick to its bid
India-based Sun already owns two-thirds of Taro, but it wants to buy the remaining third. Its latest offer, extended last October, is $24.50 per share, which would amount to about $367 million.
At the time, Taro's board set up a committee to evaluate the bid. The group took its time studying up; according to a statement, the committee sought help from Citigroup and its lawyers to make a "thorough review of Taro's business and prospects." The verdict: The bid is "inadequate and not in the best interests of Taro's minority shareholders," Taro said.
The latest rebuff follows years of back-and-forth between the two companies, with offers and rejections and shareholder lobbying. Sun has managed to increase its stake over the years to the current 66.3%. Over the years, its bids have grown, too; an offer extended in January 2009 amounted to $9.50 per share.
- see the release from Taro
- get more from Reuters
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