Dutch foundation exercises full call option on Mylan shares

AMSTERDAM — On Friday, Stichting Preferred Shares Mylan, an independent foundation established in the Netherlands, announced that it would exercise its full call option to purchase 488,388,431 preferred shares in Mylan. The move, according to the foundation, is aimed at fending off Teva’s ongoing bid to acquire Mylan. 

 

“The Stichting believes it is important to, at this point in time, make its position clear on the possible Teva/Mylan transaction, in light too of the Mylan shareholder meeting on the proposed Perrigo transaction,” the foundation said, adding that an acquisition by Teva would damage competition in the generics marketplace. 

 

“After consultation with industry experts, the Stichting is of the general belief that taking out one of the top-4 players in the generics market will reduce competition and may have an adverse impact on the affordability of generic products.”

 

Teva issued a statement Friday in opposition to the foundation’s move to purchase all the shares it can. 

 

“We strongly disagree with the stated analysis of Stichting Preferred Shares Mylan and its decision to exercise its call option, which is unwarranted, relies on false assumptions, and risks depriving Mylan stockholders and other stakeholders of the value inherent in a combination of Teva and Mylan,” the company said. “We continue to believe that our proposed transaction offers a compelling opportunity for value-creation and many other benefits for the stockholders, customers, patients, and employees of both companies.”

 

The foundation said that it would not hang onto the shares it had acquired for longer than necessary, but that its decision was aimed at creating “a level playing field” for Mylan in light of Teva’s possession of a 4.6% stake in the company and Teva’s opposition to Mylan’s current bid to purchase Perrigo. 

 

Teva said that it would continue to pursue its acquisition of Mylan.

 

“We are well advised on Dutch law, including the ability of Mylan stockholders to challenge this action in court, and are prepared to take the necessary actions at the appropriate time.”