Drug maker Sun Pharma on Tuesday declined in early trade on the bourses, a day after the company said it is softening its stance for acquiring the shares of Israel-based Taro Pharmaceutical. The company's scrip opened firm, but soon lost ground to touch an intra-day low of Rs 1,032, a dip of 1.19 per cent from its previous closing price.
Sun Pharma said it would offer a premium price over the current market rates for the scrip and has also agreed to resolve the issue with Taro, as recommended by the Israeli Supreme Court on Monday.
On the National Stock Exchange, where the scrip opened at Rs 1,044, witnessed an intra-day low of Rs 1,030.25, down 1.30 per cent from its last close. On the volume front, as many as 2,476 shares exchanged hands on the BSE and over 15,205 shares got traded on the NSE. In May last year, Taro had unilaterally terminated the 454-million dollar merger agreement signed between Taro and Sun Pharma in 2007, citing under valuation of its shares.
Thereafter, both companies had filed suits against each other in Israel and New York. Pursuant to the litigation, Sun Pharma had also launched an open offer at USD 7.75 per share to acquire additional stake in the company, which was again challenged in the Israeli Supreme Court.
The Israeli court has suggested that both parties try to solve the issues through negotiations, while barring Sun Pharma from closing the open offer.