Teva Raises Stake in Mylan as Three-way Takeover Battle Heats Up

Mylan rebuffed a $40 billion bid from Teva in April, saying it grossly undervalued the company, and pressed on with its own $34 billion hostile bid for Perrigo Co Plc in an attempt to fend off Teva's interest.

Bloomberg

REUTERS - Israel's Teva Pharmaceutical Industries Ltd has raised its stake in Mylan N.V. to the 4.61 percent needed for it to legally challenge Mylan's rejection of Teva's hostile takeover offer under Dutch law.

Mylan rebuffed a $40 billion bid from Teva in April, saying it grossly undervalued the company, and pressed on with its own $34 billion hostile bid for Perrigo Co Plc in an attempt to fend off Teva's interest.

Mylan reincorporated in the Netherlands last year, where it set up a legal structure called a stichting — Dutch for "foundation".

The structure can be used as a kind of poison-pill defense against hostile takeovers.

Under Dutch law, Teva's acquisition of a 4.61 pct stake makes it eligible to stand before the Dutch Enterprise Chamber and legally challenge Mylan, the Israeli company said.

Mylan's top shareholder, Abbott Laboratories, has already come out in support of the company's rejection of Teva by backing Mylan's proposed acquisition of Perrigo.

Abbott holds a 14.5 percent stake in Mylan.

Teva also said on Friday that it would limit its stake to less than 5 percent before Mylan's extraordinary general meeting on the Perrigo transaction if Mylan held the EGM before September.