Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) has confirmed that it has offered to acquire all of the outstanding shares of generic pharmaceutical rival Mylan N.V. (NASDAQ: MYL). Teva said it is offering $82.00 per Mylan share, in a 50% cash and 50% stock deal, a 20.5% premium over yesterday's closing price.
Mylan's board of directors had previously said that it would be opposed to any takeover overtures from Teva.
Teva president and CEO Erez Vigodman said, “Our proposal is compelling for both Teva and Mylan stockholders and other stakeholders. Our proposal would provide Teva stockholders with very attractive strategic and financial benefits and Mylan stockholders with a substantial premium and immediate value for their shares, as well as the opportunity to participate in the significant upside potential of the combined company one that would transform the global generics space and leverage it to hold a unique leadership position in the pharmaceutical industry. We have long respected Mylan’s business, and we are confident that Mylan’s Board of Directors and stockholders will agree that our proposal represents a significantly more attractive alternative for Mylan and its stockholders than Mylan’s proposed acquisition of Perrigo.”
Vigodman added, “The combination of Teva and Mylan is a truly unique opportunity to build upon both companies' solid foundations. Bringing the two together will create a much stronger, more efficient platform to achieve our goals. As one company, we would have the infrastructure and capabilities to faster pursue a differentiated business model, fully integrating specialty and generics drugs with products, devices, services and technologies to meet the evolving needs of patients and customers.”
Vigodman concluded, “Mylan’s business is a natural fit with our own and is highly complementary to it and bringing together our two companies would not only deliver the greatest value for our financial stakeholders, but also enable us to better serve patients, customers and healthcare systems throughout the world. We are confident that any regulatory requirements necessary to complete a combination with Mylan will be met in a timely manner, enabling us to realize compelling value for stockholders of both Teva and Mylan.”
Published by Globes [online], Israel business news - www.globes-online.com - on April 21, 2015
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