Teva rumored to make formal bid for Mylan at $43 billion

According to sources close to the matter, Israel-based Teva Pharmaceutical Industries (NYSE: TEVA) is considering upping its offer to buy US generic drugmaker Mylan (Nasdaq: MYL) by as much as $2 billion.

This would value the company at around $43 billion, and Teva may unveil this new proposal as early as this week, according to Bloomberg. Sources suggested that Teva was to offer between $86 and $88 per share for Mylan, up from the initial proposal of $82 per share, or $40.1 billion. According to sources, this offer would be formal and binding. Mylan unanimously rejected Teva’s prior proposal in April, and its executive chairman Robert Coury urged Teva to make a binding offer or abandon the purchase altogether.

Netherlands-based Mylan has implemented a defensive mechanism permitted under Dutch law, allowing the company to set up an independent foundation that can acquire preferred shares with voting rights in the event of a hostile takeover. Teva has now reached a point where it has a 4.6% stake in Mylan after accumulating shares, which means it is legally able to challenge the company before the Dutch Enterprise Chamber.