Mylan Rebuffs Teva’s $43 Billion Offer
Mylan nixed Teva’s $43 billion hostile takeover bid, saying the cash and stock offer falls far short of the company’s value.
The Pittsburgh, Pa.-based generics maker said it would not consider a Teva merger unless the Israeli firm’s offer was significantly more than $100 per share. Teva was standing firm on its $82 per share offer last week.
The rejection comes as Perrigo turned down Mylan’s unsolicited bid to purchase the Irish drugmaker for about $30 billion — part of a scuffle among major generics makers to consolidate an increasingly competitive market.
In spurning Teva’s offer, Mylan reiterated concerns that the deal would not be approved by antitrust regulators.
Teva is the world’s largest generics maker, while Mylan’s generics business brought in $6.5 billion in 2014.
Mylan also pointed to serious challenges in integrating two fundamentally different and conflicting cultures under a Teva board and leadership team with a poor record of delivering sustainable shareholder value.
Despite the rejections, Sanford Bernstein analyst Ronny Gal said in a research note that he expects one of the deals — a Teva-Mylan merger or Mylan-Perrigo union — will eventually go through. — Jonathon Shacat