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Taro Pharmaceutical Industries Ltd. Message Board

  • imho_dyodd imho_dyodd Aug 23, 2013 7:01 PM Flag

    Taro's 8k urges to vote for its "independent" directors

    Guys(you know who) you are just losing any ounce of credibility or honesty left. These positions are for INDEPENDENT directors. Not Rubber Stamps. Not People With No Insight on Market Valuation. These positions are for people that need to be INDEPENDENT and UNBIASED.

    In our opinion, the 2 directors Ilana Avidov Mor and Dan Biran, LOST any credibility they had when
    1. They allowed the 9 month torture to shareholders like us when they allowed liquidity and market price of taro to be capped when they are evaluating $24.5 per share. We wrote letters to the board for which we received no response. We were told by Mr. Coote that our letters have reached the Taro board.

    2.When the 2nd offer was made, they recommended this offer on 10/05 despite knowing that the 2012 earnings estimates(for the 1st 6 months) in the valuation cited for the $39.5 offer was already off by 50%. We again wrote letter to board. We urged them to look at market valuations including looking at bloomberg's median multiple of 14 times ebitda. We didn't not receive any response. These 2 people occupying the independent director position recommended to vote for unjust offer that valued a premium asset at 5 times ttm ebitda. Had this consumated, then minority shareholders would have lost $350m counting today's share price. But $1b if Taro trades at fair valuation multiples.

    So my only conclusion is they have NOT done their duty towards all shareholders despite being told by shareholders the market valuation and the premium asset that Taro is. I can only speculate why they voted for $39.5 offer:
    1. They have no insight for valuing premium and hard to replace asset like Taro and they chose to ignore repeated attempts by various shareholders to educate them of the fair value of taro and what needs to be done to realize it
    2. They are rubber stamps and don't take their duty towards shareholders seriously
    3. They are really NOT independent.
    I don't know which one of the 3 they belong.

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