Big Setback for Teva After Key Mylan Shareholder Backs Perrigo Bid

Business in Brief: SodaStream not worried about new rival.

Bloomberg

Big setback for Teva after key Mylan shareholder backs Perrigo bid

Teva Pharmaceuticals’ proposed acquisition of Mylan suffered a setback yesterday after Mylan’s biggest shareholder said it would support management’s proposed acquisition of Perrigo. “We believe Mylan’s standalone strategy and acquisition of Perrigo will further enhance its platform, is strategically compelling, value enhancing for shareholders and offers a clear path to completion,” said Miles White, CEO of Abbot Laboratories, which holds a 14.5% stake in Mylan. Mylan is offering $34.1 billion for Perrigo, a U.S. company traded on the Tel Aviv Stock Exchange, in a move seen as an attempt to fend off Teva’s bid, which Mylan Executive Chairman Robert Coury vociferously opposes. Teva has been building up a stake in Mylan, now at about 3.5%, that it is expected to use to have a say in the Mylan shareholder meeting being called to vote on the Perrigo offer. Teva shares ended down 1.2% at 231.80 shekels ($60.42), while Perrigo added 2.3% to finish at 725 shekels. (Yoram Gabison)

SodaStream not worried about new rival

Israel’s SodaStream isn’t worried about competition for its home soda makers from Keurig Green Mountain, according to Bloomberg News. SodaStream CEO Daniel Birnbaum told a conference on Monday that in his view the soon-to-be-launched Keurig Kold machine will miss the market by focusing on making colas and other sodas at a time when consumers prefer healthier alternatives such as plain or lightly flavored sparkling water. SodaStream is moving quickly to address the changing market after two years of declining sales. “We had a strategic error where we positioned ourselves as an alternative to Coke and Pepsi,” Birnbaum said. As part of the shift, some 50 new SodaStream water flavors will become available in the United States in August. Birnbaum said the market is moving away from the single-serving sizes that are Keurig’s forte. He added that SodaStream is developing a combined hot and cold beverage machine. Soda Stream shares were up 0.6% at $22.52 late-morning local time in New York. (TheMarker Staff)

Bondholders back Kardan NV bailout plan 

In one of the biggest bailouts in recent years, Kardan NV bondholders yesterday approved a plan that would let the real estate company delay repayments by two years on part of its 345-million-euro ($388 million) debt. The plan was backed by 97%-98% of holders of the companies’ Series Alef and Bet bonds. Under the bailout terms, Kardan will defer repayment of 165 million euros due this year and next, in return for which it will pay an additional 1.875% in interest and allocate a 10% stake in the company, worth 140 million shekels ($36.5 million) based on yesterday’s closing price for the stock. “After a long period of uncertainty, the approval of the debt accord will enable us to focus completely on improving our subsidiaries’ financial] results,” said Kardan CEO Shuki Oren. Kardan shares finished the day up 6.9% at 1.24 shekels. (Yoram Gabison

Tel Aviv shrugs off Greek crisis to end higher

The Tel Aviv Stock Exchange ignored the troubles on the other side of the Mediterranean yesterday, ending higher for the day as European shares hit a near four-month low on fears Greece will default on its debt. The benchmark TA-25 index ended the session up 0.8% at 1,688.05 points, while the TA-100 rose 0.9% to 14,52.73. Turnover was light, at 1.03 billion shekels ($270 million). Energy shares paced the market higher amid reports that the government is moving quickly to end the cartel issue in terms favorable to the companies. Avner rose 2.1% to 3.26 shekels, Isramco 2.4% to 82 agorot and Delek Drilling 2.2% to 17.46 shekels. Jerusalem Economy led the TA-100 higher on a 9.2% rise to 14.44 amid reports the company was being sold. Its Industrial Buildings unit was up 4.7% by closing time at 3.97 shekels. Kenon Holdings was down sharply for the third straight session, losing 1.2% to 76.10. In the fixed-income market, the Tel-Bond 20, 40 and 60 indexes rose by as much as 0.16%. (Dror Reich)