US generic pharmaceuticals company Mylan (MYL) continues its fierce resistance to the takeover bid for the company by Israel's Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA), while itself continuing to pursue its bid for US-Israeli company Perrigo Company (NYSE:PRGO; TASE:PRGO).
In a letter to Teva CEO Erez Vigodman yesterday, Mylan chairman Robert Coury writes, "Teva’s actions can only be considered to be a thinly veiled attempt to frustrate our board’s clearly articulated, consistent and successful strategic direction, including the vote at the EGM on our pending acquisition of Perrigo. It is time for Teva and its board to stop playing games with our company, its business, mission and strategy and its stakeholders.”
Last week, in open market transactions, Teva bought a 1.35% stake in Mylan at prices ranging between $69 and under $72. Coury alleges that Teva's share purchases violate US antitrust laws. "Teva has chosen to remain silent on its intentions with respect to using those shares. We consider Teva's stakebuilding as a further indication of its intention to meddle with our business, strategy and mission while remaining unclear as to its actual intentions," Coury's letter states, adding “Teva and its board must stop pursuing what amounts to nothing more than an illusory alternative for our shareholders to the Perrigo transaction.”
Teva said last week that the purchase of a stake in Mylan was an indication of the seriousness of the $40.1 billion cash and shares offer it made for the company on April 21, which Mylan's board rejected. It has so far not responded to the criticisms in Coury's letter.
Published by Globes [online], Israel business news - www.globes-online.com - on June 2, 2015
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