Mylan rejects Teva’s $40-bn offer

London, April 28

Drug major Mylan has rejected a $40 billion unsolicited merger offer from Israel’s Teva Pharmaceutical Industries saying the bid "grossly undervalues" the company considering its best-in-class assets, including a strong foothold in India.

Not only that such a merger proposal by Teva would "bring each other little in terms of new capabilities", Mylan said "bringing Teva’s 'dysfunctional' culture to the region (India) could disrupt the core of its business, result in the flight of key talent (in India and elsewhere), and meaningfully and adversely impact the results of the possible combination".

In a letter written to Teva CEO, Erez Vigodman, Mylan executive chairman Robert J Coury said the Mylan's Board "will certainly not consider engaging in discussions to sell the company unless the starting point of the discussions is significantly in excess of $100 per share". PTI