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Emerging market guru Mark Mobius, continues to gain momentum in his bid to block the sale of Taro Pharmaceuticals (TAROF.PK) to the Indian drug company Sun Pharmaceutical Industries Ltd.

In a new turn of events, Israeli financial institution, Analyst Investment Management, has joined with Brandes Partners, as the latest defectors to join with Templeton’s, in order to block the sale at the company’s general meeting on July 23rd. Another large Israeli institution, Harel, has yet to reveal which way they are leaning, but with the momentum squarely in favor of blocking the move, and it wouldn’t be a surprise if they also voted against the sale.

As I posted when news of the acquisition hit, many investors feel that the company is selling out the shareholders by agreeing to such a low purchase price. On Thursday, reports surfaced that Mobius penned a letter to shareholders saying that Templeton is prepared to consider providing Taro with the necessary funding, after conducting due diligence, to help the company avoid insolvency.

Stay tuned over the course of the next two weeks to see if investor activism can win out over poor management decisions.

Disclosure: The author’s fund has no position in any stocks mentioned as of July 12, 2007.

Source: Bid To Block Sale of Taro Pharmaceuticals Gains Momentum