Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) shareholders are reportedly dissatisfied with the share's underperformance. Fears about generic competition to its flagship drug, Copaxone and the upheaval in the company's leadership have sent the share price down 14% over the past year to Friday's close on the New York Stock Exchange of $39.65, giving a market cap of $33.5 billion.
Several foreign shareholders have been sending feelers to find out the possible response of Israeli parties, including the government and unions, about amending Teva's articles of incorporation, including allowing moving the company's headquarters, which currently must be in Israel.
Foreign, mostly US, investment institutions are a majority of Teva shareholders. The company has no controlling core or single large shareholder. In contrast to previous years, when there was no party at interest in the company, several parties now own more than 5%. Capital Research Global Investors and Wellington Management Company LLP each own 7% of the company, and some parties apparently also see an opportunity in the battered share. Teva chairman Dr. Phillip Frost owns 1.5% of the company.
Although Teva is a multinational, it has always stressed its Israeli-ness and commitment to the country. As a consequence, the local response to moving its headquarters or changing control in the company could be critical.
Teva shareholder Benny Landa, an Israeli high-tech entrepreneur, is reportedly trying to engineer a change in Teva's board of directors and has met foreign and Israeli shareholders for this purpose. Landa founded Indigo in 1977, floated it on Wall Street where it reached a market of $1 billion, fell into financial difficulties, and was sold to Hewlett Packard Co. (NYSE:HPQ) for a few hundred million dollars.
Teva said in response, "As a matter of policy, Teva does not respond to speculation or market activities by shareholders or potential shareholders."
Published by Globes [online], Israel business news - www.globes-online.com - on December 9, 2013
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