Sun Pharmaceuticals announced today that it has once again extended its tender offer for Taro Pharmaceuticals. Sun wants Taro to comply with an order by the Israeli Supreme Court that the offer remain open until a decision is made on Taro's appeal against Sun's Alkaloida. After hearing arguments earlier this month, the court ordered the two companies to negotiate an out-of-court settlement. The extension expires on January 9, 2009, at which time the Supreme Court is expected to make a decision. "Sun Pharma continues to be hopeful of reaching a mutually-beneficial settlement. The problem has always been with the other side," the company spokesperson told the Economic Times.
For those of you unfamiliar with the tug-of-war between the two, Sun and Taro agreed on a merger last year and Sun invested a hefty $60 million in the struggling Taro. But Taro called it off in May, claiming Sun's 10.25 per share offer was inadequate. Sun had no intentions of calling off the merger and commenced a tender offer at $7.75 per share in June. Taro sued Sun Pharma, but the Tel-Aviv District Court ruled in favor Sun that a special tender offer based on Israeli law was not required for the takeover. The tender offer was extended in June on court orders that it remain pending the December Supreme Court hearing.