Mylan said Monday that its board of directors unanimously voted against Teva’s offer, which was announced on April 21. Mylan stated that after a comprehensive review conducted with its financial and legal advisers, its board determined that the bid by Teva didn’t meet any of the key criteria that would cause the Mylan to depart from its current strategy and consider engaging in talks to sell the company.
“After thorough consideration, Mylan’s board unanimously determined that Teva’s proposal grossly undervalues Mylan and would require Mylan’s shareholders to accept what we believe 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,” Mylan executive chairman Robert Coury said in a statement. “In addition, we 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. We believe that these challenges would make it very difficult to generate value from this combination for Mylan shareholders.”
In making its bid, Teva called on Mylan to forgo its unsolicited offer to acquire Perrigo Co. plc, an estimated $29 billion deal announced earlier this month. Perrigo’s board rejected Mylan’s bid on Friday.
Shortly after Mylan declined its acquisition offer on Monday, Teva reiterated its aim to buy the company.
“While we are disappointed that Mylan has formally rejected our proposal, the Teva board and management team are fully committed to completing the combination of Teva and Mylan, and we stand ready to quickly complete a transaction that is compelling for both Teva and Mylan stockholders,” stated Erez Vigodman, president and chief executive officer of Teva. “We are eager to work with Mylan and its advisers to complete a transaction that will allow us to deliver the value inherent in the proposed combination to our respective stockholders, employees, patients, customers, communities and other stakeholders.”