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Taro Pharmaceutical Industries Ltd. Message Board

  • wllmfolsom wllmfolsom Mar 2, 2013 7:41 PM Flag


    I would rather see Taro commence paying a quarterly dividend of 20% of its net quarterly earnings than institute a buy-back of shares that will produce even a greater percentage of ownership of Sun Pharma.

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    • yahoo is truncating messages.

      I meant to say taro is trading at less than 6 times annualized q4 ebitda
      If Mylan offered 19 times ebitda for taro, share buyback at $65 using $390m cash would have added $20 per share additional value to remaining shareholders. Compare this to $390m dividend which would come out to be post tax 312/44.5 or around $7 per share.

      also dont forget dividend will give SUN money to finance another offer

      don't forget the symbolism effect of buyback (just announcement) . it is telling market that board thinks value of shares are undervalued and the board will take care of shareholders.

      because of the price spike expected after announcement of buy back , it will ALSO insure us from another low ball offer from majority shareholder

    • 1. So you are okay in giving uncle sam(whatever govt shareholder is citizen) 20% ?

      2. shares are trading at

136.28-1.25(-0.91%)3:34 PMEDT