Mylan Emphatically Rejects Teva's Offer (Part 3 of 3)
Teva acknowledges Mylan’s rejection
Today, Teva responded to Mylan’s rejection letter with a press release reaffirming its commitment to the transaction. Read the release here: Teva Reiterates Commitment to Cash-and-Stock Acquisition of Mylan for $82.00 Per Share.
Erez Vigodman, president and CEO of Teva (TEVA), commented, “While we are disappointed that Mylan has formally rejected our proposal, the Teva Board and management team are fully committed to completing the combination of Teva and Mylan, and we stand ready to quickly complete a transaction that is compelling for both Teva and Mylan stockholders. We are eager to work with Mylan and its advisors to complete a transaction that will allow us to deliver the value inherent in the proposed combination to our respective stockholders, employees, patients, customers, communities and other stakeholders.”
The main points of Teva’s response include:
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Teva stands ready and willing to meet with Mylan (MYL) and its advisers immediately. It wants a friendly transaction.
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Teva’s proposal is extremely attractive for Mylan stockholders. Don’t ignore this one. Mylan is trading at $71.50 to an $82 a share offer. As time drags on, the old, loyal long-only shareholders are being replaced by pusillanimous arbs who want the most value for the company right now.
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A transaction with Teva would deliver more value to Mylan stockholders than any other alternative. Teva is obviously referring to the Perrigo deal, which is a condition to Teva’s deal.
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The proposed combination of Teva and Mylan makes compelling strategic and financial sense. Mylan disagrees.
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Regulatory clearances for the proposed combination are underway. Teva thinks it can get this deal past the regulators.
Teva is supposedly talking to large Mylan shareholders to win them over. So far, Teva has not said it would go directly to shareholders, however, it is considering it, according to the latest news on the situation.
Other merger arbitrage resources
Other important merger spreads include the Hospira–Pfizer deal. The Hospira (HSP) and Pfizer (PFE) merger is also set to close in 2H15. For a primer on risk arbitrage investing, read Merger arbitrage must-knows: A key guide for investors.
Investors who are interested in trading in the healthcare sector should look at the S&P SPDR Healthcare ETF (XLV).
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