As expected, Mylan’s board has unanimously and vehemently rejected Teva’s takeover offer of around $40 billion, slamming the proposal for “grossly undervaluing” the firm.
Following weeks of speculation, Teva finally made an official, unsolicited move on the firm last week offering $82 per Mylan share in a 50/50 cash/stock transaction.
The marriage, Teva said, would create a generics powerhouse with pro forma 2014 annual sales of around $30 billion, though Mylan hasn’t seemed sold on the idea from the start.
And today Mylan’s board said Teva’s approach contains nothing that would prompt it to depart from a “successful and longstanding standalone strategy”.
“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,” noted executive chairman Robert Coury.
In a hard-hitting letter to Teva, Coury said Mylan’s board would not even enter into any discussions regarding an offer unless the starting point was "significantly in excess of $100 per share."
“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,” he said.
Teva responded by saying it remains fully committed to completing the merger.