The Supreme Court agreed on Monday to the request by Taro Pharmaceutical Industries Ltd. (Pink Sheets: TAROF) for temporary relief until the court decides on the company's appeal. Supreme Court Judge Ayala Procaccia ordered Sun Pharmaceutical Industries Ltd. (BSE: 524715) to extend its purchase offer to buy Taro shares until the court hears the appeal.
The ruling means that the Levitt and Moros families will not be forced to sell their shares to Sun Pharmaceutical at this time.
Judge Procaccia set the hearing to be held by December 15. She stated in her decision, "Not granting temporary relief until a decision on the appeal is liable to render the appeal materially irrelevant, and could create a real difficulty in restoring the situation to its previous status if the appeal is accepted. The issues raised in the appeal, in view of the content of the ruling that is the subject of the appeal, are worth reviewing and the holding of a thorough discussion."
Since Taro unilaterally terminated its merger agreement with Sun Pharmaceutical, the companies have been embroiled in a struggle over Sun's exercise of a clause in the merger agreement, which gave it an option to buy Taro's founders shares at the same price as the rest of Taro's shares in the event that the merger was cancelled.
Published by Globes [online], Israel business news - www.globes-online.com - on September 3, 2008
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