Sun Pharmaceutical has rejected Israeli firm Taro Pharmaceutical's proposal to increase the offer price of its shares to $15 a piece for their failed merger saying the overseas firm was not worth so much.
"Taro Board knows that its proposal of $15 per share is way beyond what the company is worth with no audit numbers for three years and with prior year restated numbers to be further restated," Sun Pharma chairman and managing director Dilip Shanghvi wrote in a letter written to Taro chairman Barrie Levitt.
Sanghvi was responding to a letter by Levitt, who had asked Sun to pay $15 per share, while rebuffing Sun's sweetened offer of $9.5 per share, against the initial offer of $7.75 a piece.
"The fact that the board sent such proposal knowing that Sun Pharma can never agree to it, is further confirmation that the Taro directors are only rubber-stamping outrageous proposals that are convenient solely to Levitt and Moros family, but do not have any concern for the minority shareholders," Sanghvi said in the letter.
Accusing Taro of delaying the transaction, Sanghvi said in the last 30 days Sun Pharma has not received even a single worthwhile proposal from the Israel-based firm for this purpose.
Sun had rejected Taro's offer of conducting a shareholder referendum at any price of its (Sun's) choosing to settle the issue, besides offering other options, saying it was an attempt to sidestep from the real issues.
Prior to that, Shanghvi had already sent two letters to Taro shareholders and its audit committee chairman. In these letters Sun proposed to increase the offer price to $9.5 per share, from $7.75 per share it had offered earlier.
