Teva Says Committed To Mylan Takeover

(RTTNews) - Israeli generic drugmaker Teva Pharmaceutical Industries Ltd. (TEVA) said Monday that it remains committed to its $40 billion takeover bid for Mylan N.V. (MYL), which has been fending off the unsolicited bid.

In a letter to Mylan executive chairman Robert Coury, Teva said it has a clear roadmap to deliver on its proposal that will create substantial long-term value.

In April, Teva proposed to buy Mylan for $82.00 per share, comprising about 50 percent cash and 50 percent stock, valuing the deal at about $40 billion. Teva also said that Mylan would need to back away from its acquisition bid for Ireland-based drugmaker Perrigo Co plc (PRGO).

Mylan has rejected Teva's offer, and said it is committed to pursue an acquisition of Perrigo. The company recently raised its offer to buy Perrigo to $35.6 billion.

Teva noted in the letter that its proposal to acquire Mylan offers a substantial premium, immediate cash value and significant upside potential in a financially and commercially stronger company, as compared to the proposed Perrigo transaction.

"Contrary to your claim that we are doing little more than 'meddling', our proposal is strong and serious, offers exceptional opportunity for Mylan's and Teva's stockholders and other stakeholders, and deserves careful review and engagement by your board and your stockholders," Teva said in the letter.

Teva accused Coury of continually making "grossly incorrect statements" about the Israeli company to mislead Mylan's stockholders and other stakeholders. The company added that Coury also continued to take steps toward a vote on the Perrigo transaction, while pretending that a more attractive and valuable option does not exist.

In response, Coury said that Teva's letter does not answer any of the key questions for Mylan's board of directors or for its stakeholders.

Coury asked whether Teva was planning to quickly make a legally binding exchange offer to acquire Mylan, and whether the offer would contain a 'hell or high water provision", whereby Teva will agree to whatever is required by the U.S. FTC to clear the transaction.

TEVA closed Monday's regular trading session at $60.15, down $0.47 or 0.78 percent on a volume of 2.86 million shares. In after-hours, the stock further declined $0.12 or 0.20 percent to $60.03.

MYL closed Monday's trading at $73.65, down $0.49 or 0.66 percent on a volume of 4.98 million shares. In after-hours, the stock further declined $0.05 or 0.07 percent to $73.60.