Taro Pharmaceutical Board Relies on Flawed Analysis to Shortchange Minority Shareholders
Taro's leaders own no shares of the company, dissuading them from fulfilling their fiduciary responsibility to minority shareholders.
- Taro's leaders own no shares of the company, dissuading them from fulfilling their fiduciary responsibility to minority shareholders.
- The law requires Sun to obtain approval of the majority of Taro's minority shareholders.
- Flaws in the investment bank's analysis include its use of a cost of capital of 10% to 12%.
- The bank's analysis relies on estimates—provided by Taro management—of free-cash flow during the next ten years of $445 million.