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Teva ‘to increase Mylan bid to $43bn’

Published on 07/07/15 at 11:41am
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Reports say Teva could raise its offer for Mylan to $43bn

Israeli drugmaker Teva is considering whether to up its bid for US rival firm Mylan, with reports that it could make another acquisitive move as soon as this week.

The move would be the latest in a long-running saga between the two generic manufacturers, who are vying for dominance of the market.

Teva made its first approach for Mylan in April, a $40 billion offer which was rebuffed by the Mylan board and its outspoken executive chairman Robert Coury. In a statement Coury said the offer had ‘grossly undervalued the firm’.

If Teva makes another move it will be the company’s first official bid, and will come after Coury again spoke out at Teva’s tactics of “engaging 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."

The Financial Times predicts that the bid is likely to value the Mylan shares at between $86 and $88 a share – higher than the April expression of interest, in which Teva valued Mylan at $82 a share.

It says that Teva last month raised its stake in Mylan to 4.61% - a level that gives it standing for the first time under the law in Netherlands, where Mylan has its headquarters, to commence a takeover bid. 

Mylan is itself embroiled in its own row with a rival, this time over the purchase of generics firm Perrigo. That began with an unsolicited $29 billion offer to buy the over the counter drug specialist in April, which Mylan said would produce a “global pharmaceutical leader with an unmatched commercial and operating platform”.

However Perrigo has so far fended off Mylan’s interest and in turn accused Mylan of ‘significantly undervaluing the company’. Perrigo has also joined the mergers and acquisitions fray with its own purchase of a portfolio of over-the-counter products from GlaxoSmithKline.

Lilian Anekwe

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