Teva undeterred by Mylan rejection

Erez Vigodman photo: Eyal Yitzhar

Teva CEO Erez Vigodman bypasses Mylan's board and appeals directly to its shareholders.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) is undeterred by the rejection of its bid for Mylan N.V. (Nasdaq: MYL).

Teva president and CEO Erez Vigodman said, While we are disappointed that Mylan has formally rejected our proposal, the Teva Board and management team are fully committed to completing the combination of Teva and Mylan, and we stand ready to quickly complete a transaction that is compelling for both Teva and Mylan stockholders. We are eager to work with Mylan and its advisors to complete a transaction that will allow us to deliver the value inherent in the proposed combination to our respective stockholders, employees, patients, customers, communities and other stakeholders.

In effect, Vigodman is bypassing the Mylan board and appealing directly to Mylan's shareholders.

The Israeli company said that it is "reiterating its commitment to its proposed combination with Mylan As previously announced on April 21, 2015, Teva has proposed to acquire Mylan for $82.00 per share, with the consideration to be comprised of approximately 50% cash and 50% stock. Tevas proposal for Mylan implies a total equity value of approximately $43 billion."

Teva said, "Tevas proposal is extremely attractive for Mylan stockholders. Teva is offering a substantial premium, immediate cash value and the opportunity to participate in the significant upside potential of a financially and commercially stronger company. Specifically, Tevas proposal would provide Mylan stockholders with consideration representing a 48.3% premium to the unaffected stock price of Mylan on March 10, 2015, which is the last day of trading prior to widespread speculation of a transaction between Teva and Mylan."

Teva continued, "A transaction with Teva would deliver more value to Mylan stockholders than any other alternative. Given that Teva and Mylan have complementary assets and capabilities, Teva believes the combined company could realize substantial synergies of approximately $2 billion annually. Teva expects the savings to be largely achieved by the third anniversary of the closing of the transaction, and to come from operational, SG&A, manufacturing and R&D efficiencies, as well as tax savings."

"The proposed combination of Teva and Mylan makes compelling strategic and financial sense. Together, Teva and Mylan would have the financial profile and operational infrastructure to be a more efficient, competitive and profitable company, set new standards for innovation in the industry, and meet the evolving needs of patients and customers around the world."

Teva also said, "Regulatory clearances for the proposed combination are underway. Teva has already filed for premerger notification under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR), has begun the pre-notification process with the European Commission and believes any regulatory requirements necessary to complete a combination with Mylan will be met in a timely manner. Teva has carefully studied the regulatory aspects of a combination of Teva and Mylan, in conjunction with its advisors. Teva is confident that it would be able to structure a transaction that would not contain material impediments to closing and that it can determine and promptly implement divestitures, as necessary, to gain regulatory clearances. Teva intends to work cooperatively with antitrust authorities and expects that the proposed transaction can be completed by year-end 2015."

Published by Globes [online], Israel business news - www.globes-online.com - on April 27, 2015

Copyright of Globes Publisher Itonut (1983) Ltd. 2015

 
Erez Vigodman photo: Eyal Yitzhar
Erez Vigodman photo: Eyal Yitzhar
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