Teva plans to hike Mylan bid by $2B to $43 billion this week: report
- Israel-based Teva plans to hike its takeover bid for generics competitor Mylan by as much as $2 billion to a total of $43 billion this week, according to Bloomberg. That amounts to somewhere between $86 to $88 per share.
- One big change: This will reportedly be a formal takeover offer. Mylan has been asking Teva to make its offer official or to stop its pursual of the company (in other words: put up or shut up).
- This is the latest salvo in an ongoing, three-way M&A saga that also involves generics maker Perrigo. Mylan has offered to buy Perrigo—a plan that has been endorsed by Mylan stakeholders such as Abbott Labs.
There are several big questions remaining at this point: 1) Will the increased offer satiate Mylan and convince the company to get over its hangups about a "cultural fit" with Teva?; 2) If not, will Teva take the significant stake (more than 4%) that it has purchased in Mylan and use it in order to compel official proceedings in Dutch court?; and 3) What, if any, effect will this have on Mylan's parallel efforts to snap up rival Perrigo?
The timing for an official bid is becoming increasingly critical, as Mylan has planned an upcoming shareholder meeting in which it will vote on its Perrigo bid (which has become increasingly hostile).
If Mylan were to accept Teva's offer, it would be the largest pharma deal of the year.