Teva Executives Send Letter to Mylan Chairman Making Case for Teva’s $43 Bn Offer for Mylan
Teva Pharmaceutical Industries President and Chief Executive Officer Erez Vigodman and Teva Chairman Prof. Yitzhak Peterburg sent a letter on June 8, 2015, to Mylan N.V. Executive Chairman Robert Coury to address Mylan’s concerns regarding Teva’s approximate $43 billion proposal to acquire Mylan, a deal that Mylan has rejected thus far. Prior to Teva’s bid for Mylan, Mylan had issued a proposal to acquire Perrigo, including a revised higher offer in late April 2015, a deal that Perrigo has thus far rejected. The letter by the Teva executives was in response to a letter by Coury on June 1, 2015.
“We wholeheartedly agree with you that Mylan's stockholders deserve a fair and fully-informed opportunity to weigh the Teva proposal, which offers a substantial premium, immediate cash value and significant upside potential in a financially and commercially stronger company, as compared to the proposed Perrigo transaction,” said Vigodman and Peterburg in the joint letter. “Contrary to your claim that we are doing little more than ‘meddling,’ our proposal is strong and serious, offers exceptional opportunity for Mylan's and Teva's stockholders and other stakeholders and deserves careful review and engagement by your board and your stockholders.”
The Teva executives criticized Mylan for not allowing stockholders to consider the Teva proposal. “You have continued to take steps towards a vote on the Perrigo transaction while pretending that a more attractive and valuable option does not exist,” said the Teva executives in the letter. “You have been quoted as saying in analyst meetings that you intend to put your stockholders in a ‘tough place’ by forcing them to consider the Perrigo transaction without allowing them to consider the Teva proposal.
The Teva executives also said that Mylan is not providing Mylan stockholders with complete information about the proposal. “You are asking your stockholders to vote on the Perrigo transaction with a lack of transparency, depriving them of a fair and honest financial analysis of the Teva proposal as compared to the proposed Perrigo transaction. At the same time, you continue to make confounding statements about wanting to be acquired by Novartis or Pfizer.”
The Teva executives also said that Mylan is using its governance structure to prevent a buyer of Mylan, and that Mylan has put Teva in a negative light. “Your repeated statements regarding Teva's prospects are wholly inaccurate,” said the excutives in the statement. “We are vigorously and successfully protecting our core franchises. Our specialty pipeline is in the best shape it has ever been and we continue to bolster it relentlessly. So are our capabilities in generics. Like product portfolios of many other leading pharmaceutical companies, our portfolio is also changing.”
The Teva executives said that “Teva's proposal to acquire Mylan will drive significant value and growth generation in the combined company's generic and specialty businesses, in addition to the achievement of meaningful cost synergies and efficiencies. The resources we will be able to generate from the combination will be invested in compelling growth opportunities, in generics and specialty, creating ample benefits and opportunities to Mylan's and Teva's stockholders, employees and other stakeholders. There is nothing unclear or equivocal about Teva's intentions. We have a clear roadmap to deliver on our proposal, and we remain committed to taking all of the steps necessary to deliver the exceptional benefits of this combination to the stockholders of Mylan and Teva, as well as the other stakeholders of both companies.
Source: Teva Pharmaceutical Industries