Mobius Gains Momentum to Block Taro Sale
Written by: Aaron Katsman | July 13, 2007
By Aaron Katsman
www.IsraelNewsletter.com
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 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, it wouldn’t be a surprise if they voted against the sale.
As I posted when news of the acquisition hit, many investors are of the feeling that the company is selling out the shareholders by agreeing to such a low purchase price. Reports have surfaced today 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.
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Disclosure: Author’s fund has no position of any stocks mentioned as of 7/12/07.
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Aaron Katsman is the lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.
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