Sun Pharma Climbs After Israel Supreme Court's Decision on Buyout of Taro

Sun Pharmaceutical Industries Ltd. rose the most in three weeks in Mumbai trading after Israel’s highest court ruled the company could proceed with its takeover offer for Taro Pharmaceutical Industries Ltd.

Sun, India’s largest drugmaker by market value, gained 3.1 percent to 1,776.70 rupees as of 10:04 a.m. on the Bombay Stock Exchange, the biggest advance since Aug. 18. India’s Sensitive index declined 0.3 percent.

The order paves the way for Sun to enforce a 2007 agreement and requires Taro’s controlling shareholders, including Chairman Barrie Levitt, to sell their stock to the Mumbai-based company. Sun, whose drugs include treatments for the heart and nervous- system diseases, owns 36.4 percent of Yakum, Israel-based Taro, according to data compiled by Bloomberg.

“It’s a positive” development, Rahul Sharma, an analyst at Karvy Stock Broking Ltd. in Mumbai, said by telephone. Taro has “a lot of complimentary products that could benefit Sun,” said the analyst, who has a “market perform” rating on the Indian company.

Sun offered in May 2007 to buy Taro for $7.75 a share, or $230 million in cash, and refinance $224 million in net debt.

To contact the reporter on this story: Adi Narayan in Mumbai at anarayan8@bloomberg.net.

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