Mylan Rejects Buyout Bid By Teva; Remains Committed To Firm Offer For Perrigo

(RTTNews) - Mylan N.V. (MYL) announced Monday that it has rejected the unsolicited expression of interest from Teva Pharmaceutical Industries Ltd. (TEVA) to acquire Mylan.

The Mylan Board concluded the approach did not meet any of the key criteria that would cause the Mylan Board to depart from the Company's successful and longstanding standalone strategy, and consider engaging in discussions to sell the Company.

Meanwhile, Mylan said it remains committed to its firm offer for Perrigo.

Mylan's Board unanimously determined that Teva's proposal grossly undervalues Mylan, and would require Mylan's shareholders to accept what Mylan believes are low-quality Teva shares in exchange for their high-quality Mylan shares in a transaction that lacks industrial logic and carries significant global antitrust risk.

In addition, Mylan also believe that the proposal does not address the serious challenges of integrating two fundamentally different and conflicting cultures under a Teva Board and leadership team with a poor record of delivering sustainable shareholder value. Mylan believe that these challenges would make it very difficult to generate value from this combination for Mylan shareholders.

On April 21, 2015, Israeli generic drug maker Teva Pharmaceutical Industries offered to buy smaller Dutch rival Mylan for $82 per share in cash and stock, or about $40 billion, in a bid to further tighten its grip in the global generic space.

Mylan Executive Chairman Robert Coury said, "Our Board has a very important fiduciary obligation to protect the best interests of the Company's shareholders and other stakeholders, and has always been open to considering all paths forward in that regard, and this situation is no different. However, that does not mean we will entertain offers that grossly undervalue the company, and leave our shareholders and other stakeholders exposed to serious risk.

Last week, Perrigo Co. plc (PRGO) said that its Board rejected the unsolicited Proposal from Mylan, disclosed April 8, to acquire all of the outstanding shares of Perrigo for $205.00 per share. The Board concluded that the Mylan offer substantially undervalues the company and its future growth prospects and is not in the best interests of Perrigo's shareholders.