AMSTERDAM: Israel’s Teva Pharmaceutical Industries Ltd has raised its stake in Mylan N V to the 4.61 percent needed for it to legally challenge Mylan’s rejection of Teva’s hostile takeover offer under Dutch law.
Mylan rebuffed a $40 billion bid from Teva in April, saying it grossly undervalued the company, and pressed on with its own $34 billion hostile bid for Perrigo Co Plc in an attempt to fend off Teva’s interest.
Mylan reincorporated in the Netherlands last year, where it set up a legal structure called a stichting – Dutch for “foundation”.
The structure can be used as a kind of poison-pill defense against hostile takeovers.
Under Dutch law, Teva’s acquisition of a 4.61 per cent stake makes it eligible to stand before the Dutch Enterprise Chamber and legally challenge Mylan, the Israeli company said.
