Big shareholder Abbott Laboratories backs Mylan's plan to remain independent, buy Perrigo

MarketsAssociated Press

Mylan's biggest shareholder is backing the generic drugmaker's plan to remain a stand-alone company as it fights a takeover bid from larger rival Teva Pharmaceutical.

Abbott Laboratories also says it will vote its nearly 15 percent stake in Mylan in favor of that company's proposed Perrigo acquisition bid, which is valued at around $34 billion.

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Abbott holds a nearly 15 percent stake in Mylan N.V., which it gained when Mylan bought its generic drug business.

Teva Pharmaceutical Industries Ltd. has made a $40 billion takeover offer for Mylan but wants that company to drop the Perrigo bid. Teva says Mylan is trying to keep its board and shareholders from considering the offer.

Mylan says Teva is meddling and has not made a formal, binding offer.

U.S.-traded shares of Mylan are sliding.