Mediation to resolve Sun-Taro dispute fails: Sun Pharma

Written by Agencies | Mumbai | Updated: Mar 31 2009, 20:37pm hrs
Mumbai-based Sun Pharmaceuticals Industries Ltd on Tuesday said the mediation to resolve its dispute with Israel's Taro Pharmaceutical on the aborted merger of the two firms has failed.

The mediation, as recommended by the Supreme Court of Israel earlier, was unsuccessful and no agreement was reached, Sun said in a communique to the Bombay Stock Exchange, adding it had informed the court on the development.

"The company (Sun) is now awaiting a decision of the Supreme Court of Israel," it added.

Sun has also said that it is filing a notification to the Securities and Exchange Commission of the US, informing the regulator about this.

Sun and Taro Pharma have been locked in a legal dispute over the former's proposed USD 454 million takeover of the latter.

The two pharma companies had signed a merger agreement in May 2007. Taro terminated the agreement in May last year, saying that the merger was not approved by its shareholders and that the price of USD 7.75 per share offered by Sun was not enough.