Caraco Pharmaceutical Laboratories Ltd. investor investigation over buyout offer

Dec. 7, 2010 - PRLog -- An investigation for investors in Caraco Pharmaceutical Laboratories Ltd.  shares over possible breaches of fiduciary duties was announced after Sun Pharmaceutical Industries and Sun Pharma Global, Inc proposed to take Caraco Phamarceutical Laboratories Ltd over at $4.75 per CPD shares.

If you purchased Caraco Pharmaceutical Laboratories Ltd.  shares prior to the buyout proposal and/or if you have any information relating the investigation, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

On Monday, Dec. 6, 2010, Caraco Pharmaceutical Laboratories, Ltd. (NYSE Amex- CPD) announced that it received a proposal from Sun Pharmaceutical Industries Ltd. and Sun Pharma Global, Inc for a going private transaction by which Sun Pharmaceutical Industries, Sun Pharma Global, Inc, and/or one or more of their affiliates would acquire all of the outstanding shares of Caraco Pharmaceutical Laboratories common stock not held by Sun Pharmaceutical Industries or Sun Pharma Global, Inc for a per share consideration of $4.75 in cash.
Sun Pharmaceutical Industries Ltd. and Sun Pharma Global, Inc said that the offer represents a 5% premium over the most recent closing price of Caraco Pharmaceutical Laboratories common stock and “a compelling value realization event for [Caraco Pharmaceutical Laboratories] stockholders.”

An investigation by a law firm concerns whether the offer is inadequate and grossly unfair. Shares of Caraco Pharmaceutical Laboratories Ltd. (Public, AMEX-CPD), which traded days before the announcement at roughly $4.75 per share, increased immediately in response to the takeover proposal above the buyout offer to $5.13 per share. Additionally CPD shares traded as recently as October 18 and Oct 8 over $5.80 per share in the open market. Furthermore during August and April CPD shares exceeded $6.60 per share as Caraco Pharmaceutical Laboratories has performed well for its investors in the past. The 12months Total Revenue of Caraco Pharmaceutical Laboratories Ltd. rose from $117.03million to $233.67million over the past four filing periods.
Further the investigation by a law firm questions also whether the sale process is unfair to CPD investors given the fact that Sun Pharmaceutical Industries Ltd. and Sun Pharma Global, Inc own already approximately 75% of Caraco’s outstanding shares and whether the board of directors will adequately shop Caraco Pharmaceutical Laboratories before entering into any transaction.

Those who purchased Caraco Pharmaceutical Laboratories Ltd.  shares prior to the buyout proposal and/or those who have any information relating the investigation, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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The Shareholders Foundation, Inc. is an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We believe that together we can combine the interests of many investors, and use the size of our interest as leverage against the giant corporations. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.