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. Taro delayed its planned shareholder meeting after it became apparent that they couldn’t assure the votes needed to win merger approval. While delay tactics may have worked in the past, new judge Michal Agmon-Gonen, won’t put up with it any longer. She’d fed up and she’s not gonna take it anymore.
Judge Agmon-Gonen schedule a hearing for January 13, 2008. In the event that Taro again postpones its shareholders meeting, the judge said, “If no shareholders meeting is held, the hearing on this date will decide on how Templeton’s (BEN) petition will be heard, without waiting for the results of the shareholders meeting.”
Taro has used every trick under the sun to stall. Taro notified the SEC that the audit of its 2006 financial report by Ernst & Young would be completed soon, and that financials for Q1 and Q2 of 2007 would be ready now. Once the financials are ready, a shareholder meeting could take place in October or November. Surprise, surprise. Now it appears that Taro will not meet these dates either. Taro’s attorney told the judge, “We’re working on it.”
She then went on to take a shot at Taro. “I cannot understand how it is possible to undertake a merger without financial reports. That is a scandal in itself, and contravenes the Companies Law.”
Looks like we have a judge with common sense.
Go Templeton Go!
Disclosure: Author’s fund has no position of any stocks mentioned as of 9/19/07.