Mylan tells Teva to ‘stop playing games’ and make firm bid
pharmafile | June 2, 2015 | News story | Manufacturing and Production, Sales and Marketing | M&A, MA, Mylan, Teva, generics
Mylan has written another strongly-worded letter to Teva, this time accusing the Israeli firm of ‘playing games’ and violating US antitrust laws in its attempts to acquire the company.
Writing to Teva chief executive Erez Vigodman, Mylan’s executive chairman Robert Coury demanded ‘unequivocal clarification’ on whether or not the Israeli firm will actually make a firm offer for Mylan.
Teva first expressed interest in making a $40 billion offer for Mylan in April, which Mylan later rebuffed, but Coury says that for the past six weeks there has been “no clarity on whether or not Teva will make an actual offer to acquire Mylan and, if so, the timing, terms or conditions thereof”.
He adds: “Instead, Teva has engaged in a pattern of making noncommittal, unclear, inaccurate, and non-specific statements to shareholders, analysts and the press regarding its plans with respect to Mylan, and continues to tell the same constituencies that there is a clear pathway for Teva to close a transaction with Mylan in a short timeframe and thereafter obtain control in a relatively short period. We both know that these statements are inaccurate and misleading.”
Mylan is itself in the midst of an acquisition bid for Perrigo and has faced similar rejections. Its latest move is to hold a special meeting early in the third quarter where shareholders can vote on the plans, with the intention to win over Perrigo shareholders too. Coury is hoping his letter will reduce uncertainty ahead of the meeting.
“We cannot allow our shareholders’ interests to be hijacked and we need to safeguard Mylan, its business, strategy and mission, and its stakeholders against Teva’s meddling in our affairs and improperly influencing the vote of Mylan shareholders by holding out an expression of interest”.
Coury also raised concerns over Teva’s recent acquisition of Mylan shares valuing over $76.3 million and its silence on its intentions for these shares. Mylan says it believes purchasing these shares violates US antitrust laws.
The generics firm sees all this as proof of its suspicions, voiced in an earlier letter, that all this is simply an attempt to distract the company from its Perrigo bid.
“Teva’s actions can only be considered to be a thinly veiled attempt to frustrate our board’s clearly articulated, consistent and successful strategic direction, including the vote on our pending acquisition of Perrigo,” Coury concludes.
“It is time for Teva and its board to stop playing games with our company, its business, mission and strategy and its stakeholders.”
George Underwood
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