Detroit-based Caraco Pharmaceutical Laboratories Ltd. (NYSE Amex: CPD) said Tuesday that it had created an independent committee of the board of directors to study Monday’s offer by Sun Pharmaceutical Industries Ltd. and Sun Pharma Global Inc. to buy out the 24.2 percent of Caraco stock they do not already own.
The acquisition offer was at a price of $4.75 a share.
The company said the independent committee would consider the proposal, including reviewing whether going private is appropriate for Caraco, alternatives to the proposal, whether discussions and negotiations should be entered into, and making recommendations to the board.
The independent committee has also been authorized to retain an independent financial advisor, independent legal counsel, and such other professionals it deems reasonable and advisable to assist it in carrying out its responsibilities.
Caraco develops, manufactures, markets and distributes generic pharmaceuticals to the nation’s largest wholesalers, distributors, drugstore chains and managed care providers.
More at www.caraco.com.
(c) 2010, WWJ Newsradio 950. All rights reserved.