Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) continues to accumulate shares in takeover target Mylan (MYL), even as Mylan's largest shareholder, Abbott Labs (NYSE: ABT), announced its support for Mylan's own $34 billion bid to buy Perrigo Company (NYSE:PRGO; TASE:PRGO), in effect rejecting Teva's bid.
Yesterday, Teva bought another 2 million Mylan shares for close to $150 million, reaching a holding of 4.3% in its generic drugs competitor. Teva is thus nearing the 4.6% threshold required to give it standing in any legal proceedings over its bid in the Netherlands, where Mylan is registered. Teva's stake in Mylan is now worth over $1.5 billion.
If Teva does in the end succeed in acquiring Mylan, its share purchases will help reduce the cost, since they are being carried out at market prices well below the level of its $82 per share bid. On the other hand, if the takeover attempt fails, Teva will be stuck with a large stake in its rival, and possibly with a substantial loss on it.
Mylan contends that Teva's share purchases contravene US antitrust law, but Teva insists that they are lawful.
Published by Globes [online], Israel business news - www.globes-online.com - on June 18, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015