* Ending the deal in best interest of shareholders - Cos
* Taro shares rise 2 percent on the New York Stock Exchange
Feb 8 (Reuters) - India's Sun Pharmaceutical Industries Ltd
, which has been on a buying spree, ended its agreement
to gain full control over its Israeli unit Taro Pharmaceutical
The companies decided that ending the deal was in the best
interest of their shareholders, Sun Pharma and Taro said in a
"The decision (to not merge Taro) could prove beneficial for
Sun Pharma as long as Taro is generating good cash flow," said
Siddhant Khandekar, an analyst at ICICI Direct in Mumbai.
"There might be structural issues while handling Taro, but
it won't hurt Sun to a large extent."
Sun Pharma had last offered $39.50 per share, or about $571
million, for the one-third stake it did not already own in Taro,
seemingly winning over the Israeli company's board following a
long battle to gain full control of the U.S.-listed drugmaker.
Raising the price beyond $39.50 per share did not make any
sense for Sun Pharma, Khandekar said.
Sun Pharma, India's biggest drugmaker by market value,
remains one of the few Indian pharma companies that has done
successful international acquisitions at a time when global
pharmaceutical giants such as Abbott Laboratories and
Sanofi SA have been buying out Indian drug companies
at high valuations.
Sun Pharma bought U.S.-based Dusa Pharmaceuticals Inc
for about $230 million and URL Pharma from Japan's
Takeda Pharmaceutical Co for an undisclosed amount last
Taro shares were up 2 percent at $51.75 in morning trade on
the New York Stock Exchange. Sun Pharma shares closed down
marginally at 746.10 rupees on Friday on the National Stock