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Taro Pharma says sale to Sun Pharma is canceled

NEW YORK (AP) -- Taro Pharmaceutical Industries Ltd. said Friday it won't be acquired by Sun Pharmaceutical Industries Ltd., terminating an agreement from August.

Sun already owns most of Taro, and it agreed to buy the remaining third of the company for about $580.6 million, or $39.50 per share. Sun made an offer of $24.50 per share in late 2011, and the companies have periodically discussed an acquisition since mid-2007.

Taro is based in Israel, and Sun in India.

Shares of Taro are trading well above the proposed acquisition price and they rose further on the news Friday. The stock gained $1.61, or 3.2 percent, to $52.16. Earlier it reached a nine-year high of $53.28. The shares last traded at that price in August 2003.