India's Sun Pharmaceutical Industries seems poised to purchase the Israeli-American company Taro Pharmaceuticals at long last, after it raised its bid 60% and won over Taro's board on Monday.
Sun, whose chairman is former Teva CEO Israel Makov, raised its offer to $39.50 a share from a previous $24.50, or a total of $571 million for the third of Taro shares it doesn't already own.
When the purchase is completed, Taro will be delisted from the New York Stock Exchange.
"It's a positive move because this will help Sun Pharma bring Taro to its own levels and also run the U.S. business more efficiently," said Deepak Malik, analyst at the Indian brokerage house, Emkay. "The price offered is market-driven and hence is a fair price."
Three weeks ago, a special committee of Taro's board rejected the $24-a-share offer, which was nearly a third less than Taro market price. The new, higher bid is also below Taro's market price, but only by 2.5%.
Taro was down 3.6% to $39.51 in late trading.
Sun Pharmaceutical and its affiliates own about 66% of Taro's ordinary shares and all of the shares of Taro's founders.
Reuters contributed to this report.
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