Sun Pharmaceutical Industries Ltd. is understood to have decided to submit a revised bid offering $9.5 per share for the acquisition of Israel-based Taro Pharmaceuticals, as a part of settlement, reports media.
The revised offer is higher than the existing offer of $7.75 a share and is far lower than the $15 a share demanded by Taro Chairman Barrie Levitt and slightly lower than the ruling market rate of Taro. The Taro stock closed at $9.85 on the OTC counter Monday.
Sun Pharma proposes to revise the bid on assumption that the overseas company will withdraw legal suits it had filed against Mumbai-based company with the Israeli Supreme Court.
A person close to the settlement reportedly said that both parties had arrived at a settlement last week to put an end to the legal tangle over the control of Taro. Incidentally, Sun Pharma Chairman and Managing Director and Levitt met in Israel on Thursday. A representative of Franklin Templeton, which owns 13% stake in Taro, also attended the meeting.
Ram Caspi, as Israeli attorney specializing in international transactions and merger and acquisitions, is acting as mediator, the person said, adding that Sun will announce the revised offer soon.
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