Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) aims investing an additional $1.2 billion in the purchase of Mylan N.V. (MYL) shares, reports "Reuters" according to "people familiar with the matter." This would give Teva a 4.6% stake in its generic pharmaceutical rival when added to the $450 million it invested last week in buying a 1.35% stake in Mylan.
Holding a 4.6% stake would enable Teva to make a legal challenge in the Netherlands against Mylan, which has rejected the Israeli company's $41 billion takeover bid. At the same time Mylan remains commited to its bid to take over Perrigo Company (NYSE:PRGO; TASE:PRGO) for $34 billion.
Mylan claims that Teva's stake in it already violates US antitrust laws, which bar companies from acquiring stakes worth more than $76.3 million in rivals without regulatory approval. Teva's stake in Mylan far exceeds that threshold. But Teva argues that as Mylan is headquartered in the Netherland, US antitrust laws do not apply.
"Reuters says, "Teva may seek to reach this ownership threshold ahead of Mylan's record date, or the date in which a shareholder must officially own shares to be entitled to vote on the tender offer for Perrigo, they said. This would raise pressure on Mylan's management ahead of the vote, the people added."
Hedge fund Paulson & Co LP, which supports Teva's bid, has raised its stake in Mylan to around 4.6%.
Published by Globes [online], Israel business news - www.globes-online.com - on June 3, 2015
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