The largest Indian drug maker, in terms of market value, Sun Pharmaceutical Industries Ltd has started initiatives to end acquisition dispute of Taro Pharmaceutical Industries Ltd. The company has offered to raise purchase price of stake to close the deal out of court.

The Israeli drug maker was earlier ready to merge in July 2007 but later denied on charges of low valuation of company. It may be recalled that Israeli Supreme Court has directed both companies to settle prices with mutual discussions. The court has given deadline of 30 days to end the dispute. Sun Pharma and its US subsidiary had signed a $454 million merger deal with Taro in 2007 but it could not be completed on lower valuation issue.

Sun Pharmaceuticals has not received the response of its first letter in which it had asked to either terminate deal or increase Taro's shares to $9.50 from the earlier $7.75. In a filing before the stock exchanges on Monday, Sun Pharma said that it has put forth proposals before Taro as per recommendations of Israeli Supreme Court.

Sun Pharma's Spokesperson, Uday Baldota said, "Depending on which option is considered (by Taro), Sun Pharma is offering additional 16-23% for minority shareholders. Our proposals given to Taro have been designed keeping in mind primarily the interests of minority shareholders. It has been 15 days, but Taro is yet to formally respond to our proposals."

Sun Pharma Chairman, Dilip Shangvi had also written letters to Taro's directors stating various options to end the tussle.