Franklin Templeton relieves Sun Pharma
Pharmaceutical major Sun Pharmaceutical has finally got some relief after Franklin Templeton has finally decided to withdraw the appeal against the company. Franklin Templeton was a co- appellant along with Israeli pharmaceutical major Taro Pharma against Sun Pharma.
The news helped the shares of Sun Pharma to upsurge by 5.62% to Rs. 1538.80 on the BSE.
While withdrawing from the appeal, Templeton said, "Taro's condition continues to deteriorate in terms of proper corporate governance. Under these circumstances, Templeton believes that it must act without delay to enable Taro to emerge from the situation in which it has found itself by removing the barriers for the transfer of control in Taro, for the good of all shareholders."
Templeton has been facing problems as the Taro was not able to publish financial reports for several years. And other concern was the dependence of the customers on the press releases, which were supposed to be unreliable.
Taro and Sun Pharma entered merger agreement for $454 million in May 2007. After one year Taro terminated the agreement on its part on the account of insufficient pricing. After this both the companies filed suits against each other in the Supreme Court of New York.
During their litigation, Templeton Frankton also filed a suit against Sun alleging violations in disclosures made by Sun in its tender documents to acquire shares.
