AMSTERDAM: A foundation set up by pharmaceutical firm Mylan NV triggered a Dutch variation on a poison pill to fend off a takeover proposal by Israeli rival Teva Pharmaceutical Industries Ltd.
The foundation, called a “stichting” in Dutch, has the option to temporarily obtain preferred shares with special voting rights that give it the power to thwart a hostile bid. Mylan, which has its headquarters in Pennsylvania but is legally domiciled in the Netherlands, created the stichting after it became a Dutch corporation through an acquisition earlier this year.
The stichting’s board said in a statement Thursday that it “has formed its independent judgment that Mylan N.V.’s best interests and those of its broader shareholder constituencies are at risk as a consequence of the uncertainty and threats associated with a possible takeover of Mylan by Teva.” The board said its aim in triggering the shares is to restore stability at Mylan so it can concentrate on its business.
Mylan set up the stichting in April, giving it the power to obtain a set of preferred shares that dilutes the voting power of other shareholders in case of a challenge to the company’s independence.
