How much does the management of Mylan (MYL) believe that the company is worth? To judge from their attitude to the hostile takeover bid from Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA), any offer below $100 per share is a non-starter. But speaking with another voice, the company values itself much lower; at $73.33 per share, to be precise.
In his letter last week to Teva CEO Erez Vigodman, Mylan chairman Robert Coury stated that Mylan's board had no desire for the company to be bought by an Israeli company, and that Teva's bid grossly undervalued it. Less than $100 per share will not be considered, the Mylan board declared, in response to Teva's offer of $82.
But, as Bloomberg points out, in the 10-K report that it filed last week, Mylan outlined a performance-based incentive plan for executives that sets a $73.33 price target for 2018, and stated that reaching this target would represent "an extraordinary achievement".
This gap, and what looks like a lack of coherence in Mylan's management, could be an opening for Teva, which continues to appeal to Mylan's shareholders to accept its bid.
Published by Globes [online], Israel business news - www.globes-online.com - on May 3, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015
Published by Globes [online], Israel business news - www.globes-online.com - on May 3, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015