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Sun Pharma In The News

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Sun Pharma gets boost as Taro board voted out


New Delhi: In a major boost to India's Sun Pharma which is locked in a takeover battle with Taro, the shareholders of the Israeli drug firm on Thurs'day rejected a proposal to reelect directors.
The shareholders have also turned down a new indemni'fication proposal by the Taro board, Sun Pharma said in a statement.
Sun Pharma is the single largest shareholder in Tara with 36 per cent stake, and it has been trying to take control of the company ever since their $454-million merger deal of 2007 was unilaterally terminated by the Israeli firm a year later.
The shareholders voted decisively against the election of Taro's external director nominees, Sun Pharma said.
Taro shareholders holding over two-thirds of its equity want to remove the Levitts promoter family and their associates from the board, it said. Commenting on the development, Sun Pharma chairman and managing director Dilip Shanghvi said: "With such an unambiguous rejection by mi'nority shareholders, the Levitts and Taro directors now have lost this only crutch."
It is time Levitts who own a mere 12 per cent of Taro's equity hear the voice of the mi'nority shareholders and stop relying on their special founder shares to decide who will manage Taro, he added.
Reacting to the shareholders' decision, Templeton Asset Management executive chairman Mark Mobius told a TV channel that, "We expect Sun management which is most capable to take over the management of the company Taro.