Teva completes buy of 4.6 percent stake in Mylan as part of $40 billion takeover attempt

IndustriesAssociated Press

Israeli drugmaker Teva Pharmaceutical said Friday that it completed buying 4.6 percent of Mylan N.V. as part of its takeover attempt of the rival generic drugmaker.

The stake will let it start proceedings before the Dutch Enterprise Chamber related to the takeover, should the company decide to.

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In late April, Mylan NV rejected Teva's $40 billion offer, saying then that the deal undervalued the company.

Both Mylan and Teva Pharmaceutical Industries Ltd. are looking to consolidate in an increasingly competitive generic drug industry.

But the two companies have been squabbling. Teva has said that Mylan is trying to keep its board and shareholders from considering the offer. Mylan, in turn, has said Teva is meddling in its affairs and has not made a formal, binding offer.

One sticking point: Teva wants Mylan to drop a $34 billion offer for over-the-counter medicine maker Perrigo, an offer Perrigo has rejected.

Teva said Friday that it will limit its stake in Mylan to no more than 5 percent if a meeting about the Perrigo bid is held by Aug. 31.