Mylan Says Teva’s Purchase of a Stake in the Firm Violates U.S. Antitrust Rules

Kahlon, Dery opt out of OECD meeting; Raviv Brookmayer named CEO of Mega; TASE share and bonds prices decline.

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The Mylan Laboratories Inc. headquarters in Canonsburg, Pennsylvania.
The Mylan Laboratories Inc. headquarters in Canonsburg, Pennsylvania.Credit: Bloomberg News

Mylan says Teva’s purchase of a stake in the firm violates U.S. antitrust rules
Mylan, the multinational pharmaceutical company for which Teva Pharmaceutical Industries has made an unsolicited offer, said Teva’s acquisition of a 1.35% stake in the company violated U.S. antitrust rules. “We consider Teva’s stakebuilding as a further indication of its intention to meddle with our business, strategy and mission while remaining unclear as to its actual intentions,” Mylan said in a letter to Teva CEO Erez Vigodman. Mylan did not clarify which antitrust rule Teva violated. Neither company was immediately available for comment. Mylan said on Monday there was still no clarity whether Teva would make a formal offer, almost six weeks since Teva’s offer for about $40 billion. (Reuters)  

Kahlon, Dery opt out of OECD meeting
Finance Minister Moshe Kahlon and Economy Minister Arye Dery are not attending this week’s meeting in Paris of the finance and trade ministers of Organization for Economic Cooperation and Development member states. The reason given for their absence is that they have just taken office. Israel will be represented by Ehud Cohen, head of  the the Economy Ministry’s foreign trade desk, and Israel’s ambassador to the OECD, Carmel Shama-Hacohen. Cohen said the agenda includes protectionism, especially by developing states, since the 2008 economic crisis. (Ora Coren and Zvi Zrahiya)

Raviv Brookmayer named CEO of Mega
The board of directors of the ailing Mega supermarket chain on Tuesday approved Raviv Brookmayer’s appointment as CEO. Brookmayer was CEO of Naaman Porcelain, which like Mega is part of Alon Blue Square Israel, since 2013. The appointment comes amid reports that efforts by discount supermarket retailer Rami Levy to buy Mega have collapsed. Brookmayer will replace Moti Keren at the helm of Mega. In the more distant past, Brookmayer worked for Super-Sol, Israel’s biggest supermarket chain, and headed the Home Center home improvement chain for four years. Last week Alon Blue Square informed the Tel Aviv Stock Exchange that it had committed to inject up to 240 million shekels ($62.1 million) into Mega in the event of liquidity problems. (Adi Dovrat-Meseritz and Yoram Gabison)

Cellcom to record one-time charge of 25m shekels for early retirement plan this quarter

Cellphone carrier Cellcom Israel reported on Tuesday that it will be recording a one-time expense of around 25 million shekels ($6.5 million) in the second quarter of 2015 as a result of a voluntary retirement plan. A similar charge of 30 million shekels in the first quarter was a drag on the company’s financial results for that quarter. Cellcom also said that it was considering a rights offering of 120 million shekels to 150 million shekels to shore up its balance sheet, although no final decision had been made in that regard. (Amitai Ziv)

TASE share and bonds prices decline
Share prices slumped somewhat on the Tel Aviv Stock Exchange on Tuesday against the backdrop of global concern over the possibility of a stalemate in negotiations over the Greek government’s debt crisis. The benchmark TA-25 index slid 0.07%, to 1,693.00 points, while the broader TA-100 index dropped by 0.18%, to 1,465.13 points. Total trading volume was 1.089 billion shekels ($282 million). Near the end of trading, the local bond market showed major declines following a similar decline on the American bond market, spurred by relatively high inflation figures for the Eurozone. Among the gainers on the TASE were Opko Health, which was up 2.7%. Although the Communications Index bucked the overall negative trend, rising 0.4%, Cellcom Israel’s stock fell by 2.5%.  Among the most active shares was Teva Pharmaceutical Industries, which slid by 1.1%. (Eran Azran)

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