Sun Pharma''s proposed takeover of Taro Pharmaceuticals is already facing problems from investors but now it could get worse with the Israeli political lobby backing home grown Taro. In a letter to Israeli Minister of Industry, Trade & Labor, Eli Yishai, the Mayor of Haifa, Yona Yahav has raised concerns that Taro sale will cost 650 jobs in Israel as Sun Pharma might transfer Taro facilities to India. However, in a regulatory filing, Sun Pharma has said it has no plans to close Taro''s Israeli facilities and it is ''committed'' to maintain and enhance Taro plants.
Sun Pharma has alleged that current Taro management is underutilising its facilities and has considerably reduced its investment into R&D. All the government will try to be protect jobs. Sun Pharma will also have to come out in amicable way. Taro promoters have already moved to Israeli courts seeking higher bids from Sun Pharma. CLSA in its latest report has mentioned that Sun Pharma might have to shell out extra from its current offer of $7.75 a share. Though Templeton recently indicated a price of US$20 a share as fair value for Taro acquisition, analysts say with Sun-Taro matter partly in courts and political lobbying for Taro, things might get even worse than anticipated for the Indian pharma company.
Sun Pharma has alleged that current Taro management is underutilising its facilities and has considerably reduced its investment into R&D. All the government will try to be protect jobs. Sun Pharma will also have to come out in amicable way. Taro promoters have already moved to Israeli courts seeking higher bids from Sun Pharma. CLSA in its latest report has mentioned that Sun Pharma might have to shell out extra from its current offer of $7.75 a share. Though Templeton recently indicated a price of US$20 a share as fair value for Taro acquisition, analysts say with Sun-Taro matter partly in courts and political lobbying for Taro, things might get even worse than anticipated for the Indian pharma company.
No comments:
Post a Comment