Sun Pharmaceuticals's subsidiary, Alkaloida Chemical Company, has extended its tender offer for Taro Pharmaceuticals until November 7, 2008, according to a statement released today. The two companies were negotiating a merger when Taro called it off back in May. Apparently, Sun's $10.25 per share offer was not adequate. But Sun Pharma had no intentions of calling off the merger and commenced a tender offer at $7.75 per share in June.
The tender has been extended to comply with a continuance issued by Israel's Supreme Court while it decides the pending case, brought by Taro against Alkaloida, regarding the regulations of the special tender offer under Israel Law. That case is scheduled to begin on December 8, 2008.
The Tel-Aviv District Court previously ruled in favor Sun Pharma that a special tender offer based on Israel law was not required.
In August, the FTC ruled that the Sun-Taro merger would give the company a monopoly on generic anticonvulsant drugs in U.S. As a result, Sun consented to an order requiring the company to sell the drugs to India pharma Torrent should the merger be completed.
- check out the Sun Pharma release