Taro said in a statement on Thursday the $24.50-per-share offer by the Indian drugmaker was inadequate and “not in the best interests” of its minority shareholders.
Grand Slam Asset Management, one of Taro's minority shareholders, said last October that a fair offer would be at least $48.50 per share.
Mumbai-based Sun Pharma, which holds 66.32 per cent of Taro, made a non-binding offer for remaining stake last year.
Sun Pharma, which could not immediately be reached for comments, has said it will stick to its current offer.
Shares in Sun Pharmaceutical Industries fell 0.12 per cent to rs 625.95 rupees. The broader Mumbai market was up 0.51 per cent.
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