Teva confirms rumored bid for Mylan, making a $40 billion offer

Confirming earlier speculation, Israel’s Teva Pharmaceutical Industries (NYSE: TEVA) has announced an unsolicited takeover bid for US generics major Mylan (Nasdaq: MYL).

Teva is proposing a transaction valued at $82.00 per Mylan share, with the consideration to be comprised of around 50% each in cash and stock, equal to around $40.1 billion. The Teva cash and stock proposal provides Mylan stockholders with a substantial premium and immediate cash value, as well as significant potential for future value creation through participation in a financially and commercially stronger company.

Teva noted the offer was a 48% premium to Mylan’s stock price on March 10, 2015, which it said was "the last day of trading prior to widespread speculation of a transaction between Teva and Mylan."Ahead of the announcement today, Mylan shares jumped by as much as 12.43% to $76.50 in pre-market trading t, following a Bloomberg report suggesting that Teva was preparing to make an unsolicited bid for its rival.