Mylan Moves to Cancel Now Moot Poison Pill
Mylan N.V. reports that the Stichting Preferred Shares Mylan, an independent foundation incorporated under the laws of the Netherlands requested cancellation of the preferred Mylan shares issued to the foundation on July 23, 2015. In July, the Dutch-based foundation exercised a call option to acquire 488 million share of Mylan, thus effectively creating a Dutch version of a poison pill to block at that time, Teva’s proposed acquisition of Mylan. Teva has since dropped its pursuit of Mylan after announcing its proposed acquisition of the generics business of Allergan (the new corporate name of the combined Allergan and Actavis).
In preparing for a possible legal battle, Teva purchased a 4.61% stake in Mylan N.V., which would have enabled Teva to begin legal proceedings in a Dutch court (Mylan is headquartered in the Netherlands) regarding its takeover proposal if necessary. Mylan is domiciled in the Netherlands following its $5.3 billion acquisition of Abbott Laboratories’ non-U.S. developed markets specialty and branded generics business earlier this year.
The Foundation informed Mylan it was satisfied that influences that might adversely affect the strategy, mission,and other interests of Mylan, its business and its stakeholders to be protected by the Foundation as described in the Foundation’s articles of association have been sufficiently addressed. Cancellation of the preferred shares requires Mylan shareholder approval. The Mylan Board of Directors will announce the shareholders meeting to approve the cancellation of the preferred shares in due course, said the company.