The saga of Sun Pharma's protracted battle to acquire control of Israel’s Taro Pharma seems to be approaching its final hours. Sun, in a last ditch attempt at an early resolution has proposed two options. The first involves a 22 per cent premium to its earlier offer, which will cost Sun $45 million or more. But if agreed to by the Taro promoters, it should give Sun 100 per cent control of the company. Besides, the Taro promoters will also have to vacate all executive positions. The second option offers a 16 per cent premium on a tender offer. The Taro promoters are required to recommend to shareholders to tender their shares at $9 per share it may also be quicker as the offer closes in 10 days. Meanwhile, in a separate letter to the Taro board, Sun rubbished all claims of a financial turnaround at Taro based on which Taro was claiming a higher valuation. Sun claims that much of the improvement in Taro's profitability is due to lower R&D, which may be detrimental in the medium term.
Moreover, Sun in a release to BSE said that it is awaiting a response to its proposals from Taro. Meanwhile, an Israeli newspaper Calcalist reported on Sunday that Taro has rejected Sun's offer to settle out-of-court. However, the Sun Pharma Chief was not reachable for a clarification on the same, but if the report of rejection is true, then the Supreme Court's decision on January 9 will certainly become paramount.