Teva claims Mylan made "incorrect statements" in effort to suppress its $40-billion offer

In a letter to Mylan executive chairman Robert Coury, Teva CEO Erez Vigodman and chairman Yitzhak Peterburg on Monday said that Mylan has "made grossly incorrect statements to mislead your stockholders and other stakeholders about us." The executives claimed that Mylan has engaged in a "desperate attempt" to stop shareholders from considering its $40-billion takeover offer for the company. The comments were made in response to a letter from Coury urging Teva to make a formal offer for Mylan, while acusing the Israeli drugmaker of interfering with its affairs.

In April, Mylan's board unanimously rejected Teva's proposal, valued at $82.00 per share. In the letter to Coury, Vigodman and Peterburg stated "contrary to your claim that we are doing little more than 'meddling', our proposal is strong and serious, offers exceptional opportunity for Mylan's and Teva's stockholders and other stakeholders and deserves careful review and engagement by your board and your stockholders." The executives suggested that Mylan has not allowed its shareholders to fully consider Teva's proposal.

Teva's executives also disputed claims by Mylan CEO Heather Bresch that the Israeli's company's business is in a weak state. "The proven results from recent actions that Teva has taken demonstrate that Teva is stronger than ever, both in its generic and specialty businesses," Vigodman and Peterburg stated, adding "we have significantly strengthened the fundamentals of our company, solidified our key franchises, put in place robust engines for growth and provided a clear roadmap to further reinforce our industry-leading position."

Vigodman and Peterburg also defended Teva's recent purchase of shares in Mylan. "Teva's acquisition of Mylan shares is in compliance with applicable law," the executives said, continuing "we have conferred with the US antitrust authorities and have been given no reason to believe that our purchases violate the Hart-Scott-Rodino Act or any other US antitrust laws."

In response to Teva's letter, Coury indicated that Teva failed to provide "straightforward answers to straightforward questions." Coury questioned "is Teva planning to quickly make a legally binding exchange offer to acquire Mylan in order to provide clarity to our board of directors, Mylan and its stakeholders?"

For related analysis, read ViewPoints: Come to Papa – Perrigo encourages another Mylan bid.

To read more Top Story articles, click here.