Teva accuses Mylan of 'desperate attempt' to suppress bid

AP News
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Posted: Jun 08, 2015 1:06 PM

Teva Pharmaceutical says rival generic drugmaker Mylan is engaging in a "desperate attempt" to keep its board and shareholders from considering Teva's $40 billion-plus takeover offer. The claim, delivered Monday in a letter to Mylan, was the latest round of caustic barbs traded by the companies.

Teva executives wrote Mylan Executive Chairman Robert J. Coury that their company's acquisition bid is strong and serious and offers "exceptional opportunity" for the shareholders of both companies.

Their correspondence was in response to a June 1 letter from Coury, in which he accused Teva of meddling in Mylan's affairs and not making a formal, binding offer for the drugmaker.

In late April, Mylan NV rejected the cash-and-stock buyout bid from Teva, saying then that the deal undervalued the company.

Both Mylan and Israeli based Teva Pharmaceutical Industries Ltd. are looking to consolidate in an increasingly competitive generic drug industry.

Mylan reincorporated in the Netherlands in February as part of an acquisition that lowered its tax liabilities. It is trying to buy Perrigo Co. PLC, which made a similar move in December 2013. Teva wants Mylan to drop the Perrigo bid.

U.S.-traded shares of Teva rose 6 cents to $60.68 while broader indexes slipped in Monday afternoon trading. Meanwhile, Mylan shares fell 39 cents to $73.75, and Perrigo dropped $1.44 to $189.82.