Sun Pharmaceutical may face legal battles in New York courts in its attempt to take over the Israeli drug major Taro Pharmaceuticals, unless its chairman Barrie Levitt and family give up in a few weeks. This is despite the green signal given by an Israel court to proceed with the tender offer.
According to informed sources, all eyes are on whether Barrie Levitt and family surrender their stake before or soon after the tender offer expires on September 3. If the Taro promoters decide against giving up their stake, Sun may file a fresh suit in the New York District court to effect the option agreement and force Barrie Levitt and family to surrender their shares.
Sun Pharma said it would file an amendment to its previously announced tender offer conditions with the US Securities and Exchange Commission under which the surrender of shares by the Taro promoters was a pre-condition to the offer.
The amendment will make share surrender mandatory as a follow-on condition after the expiry of the offer.
"We are waiting to hear from them and they should honour the commitment as part of the option agreement," said Uday Baldota, vice president, investor relations of Sun Pharma.
