Komfie Manalo, Opalesque Asia: Teva, the giant Israeli generic drug maker, might look to billionaire hedge fund manager John Paulson in a $40bn takeover bid with Mylan, a rival company.
Tevahas approached Mylan, a rival, with a $40bn takeover offer in a bid to create the world’s biggest generic drug maker. But the latter has rejected the offer, saying that it wants to acquire Italian firm Perrigo for $34bn instead, reports the New York Post. Teva has until July to offer a sweeter deal, before when Mylan’s shareholders will vote on the Perrigo deal.
However, Paulson’s Paulson & Co., the biggest shareholder in Mylan, may wish to push Mylan to consider Teva’s takeover bid, the report says.
Mylan Chairman Robert Coury cited Dutch laws in rejecting Teva’s offer. According to the Dutch rule, Mylan, which moved from the U.S. to the Netherlands this year, is required to consider "all stakeholders" — including employees and not just shareholders, when deciding such a major move. Mylan formed a Dutch legal structure called a Stichting, that has veto power to stop a takeover.
In 2007, Paulson joined another hedge fund Centaurus Capital which sued Dutch industrial conglomerate Stork to challenge its plan to sell off parts of the company.
Teva is considering following a similar litigation strategy in the Dutch courts — hopefully, with Paulson as its guide, ...................... To view our full article Click here
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