Abbott pledges backing for Mylan’s Perrigo bid

ABBOTT PARK, Ill. — Mylan’s largest shareholder has promised to back the company’s bid to buy Perrigo, which would help fend off Teva’s $40 billion takeover offer. Abbott Laboratories, which owns a 14.5% share, pledged Tuesday to vote its shares in favor of Mylan’s $32 billion offer to buy Perrigo.

Though Perrigo has rejected Mylan’s bid, Abbott’s backing will help Mylan fight off Teva’s $40 billion acquisition offer,  as Teva has said its takeover would be contingent on Mylan dropping the Perrigo bid. Mylan has rejected Teva’s offer and has said that a deal between the two would violate U.S. antitrust laws. Abbott’s backing might ensure that Mylan won’t drop its bid for Perrigo.

“As both Mylan's largest shareholder and its partner through our continued manufacturing relationships, Abbott has considered the entire situation and we believe Mylan's standalone strategy and acquisition of Perrigo will further enhance its platform, is strategically compelling, value enhancing for shareholders, and offers a clear path to completion,” Abbott’s CEO and chairman Miles White, said. “In light of these factors, we will be voting in favor of the Perrigo transaction.”