Teva mulling bid for Mylan – Bloomberg

Erez Vigodman

According to Bloomberg, "Teva is evaluating the purchase internally and has also approached advisers."

 Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) is examining a possible bid for Mylan NV (Nasdaq: MYL), according to a report by Bloomberg dated Friday, and citing "people with knowledge of the matter". Such a move "would create a global generic-drug giant", Bloomberg says.

Bloomberg hedges its report heavily, writing, "Teva hasn’t made a formal approach yet, the people said, though Mylan is aware of the Israeli company’s interest. Teva is evaluating the purchase internally and has also approached advisers about the potential bid and financing, the people said, asking not to be identified discussing private information. The deliberations may not lead to an offer, the people cautioned. Mylan would be a very large purchase for Teva Chief Executive Officer Erez Vigodman, who has been in the position for just over a year. Also, Mylan earlier this month set up a mechanism under Dutch securities law that could make a takeover more difficult."

As Bloomberg points out, analysts have been speculating for some time about a possible takeover of Mylan by Teva.

Earlier this month, Mylan made a $28.9 million bid for Perrigo (NYSE: PRGO), which is traded in Tel Aviv and has extensive Israeli operations deriving from its acquisition of local company Agis a decade ago.

For its part, Mylan said on Friday that it was opposed to a takeover by Teva. Company chairman Robert Coury said in a statement, “We have studied the potential combination of Mylan and Teva for some time and we believe it is clear that such a combination is without sound industrial logic or cultural fit. Further, there would be significant overlap in the companies’ businesses and we believe that it is unlikely that any such combination could obtain anti-trust regulatory clearances.” Coury said that Mylan was committed to its move for Perrigo.

Teva has not commented on the Bloomberg report. Its share price closed 2.24% higher in New York on Friday, at $64.91. On the Tel Aviv Stock Exchange this morning, Teva's share price is down 4.49%, at NIS 251.

Published by Globes [online], Israel business news - www.globes-online.com - on April 19, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

Erez Vigodman
Erez Vigodman
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