Erez Vigodman, Teva’s president and CEO, has responded to the June 1 letter by Mylan’s executive chairman Robert J. Coury. Vigodman addresses Courey’s accusations about Teva’s hostile takeover of Mylan and the lack of information available to stakeholders.
Vigodman wrote, in the letter to Courey, “We wholeheartedly agree with you that Mylan’s stockholders deserve a fair and fully-informed opportunity to weigh the Teva proposal, which offers a substantial premium, immediate cash value and significant upside potential in a financially and commercially stronger company, as compared to the proposed Perrigo transaction. Contrary to your claim that we are doing little more than ‘meddling,’ our proposal is strong and serious, offers exceptional opportunity for Mylan’s and Teva’s stockholders and other stakeholders and deserves careful review and engagement by your board and your stockholders.
“The picture that you have been creating is a desperate attempt to prevent this from happening, as clearly demonstrated by your actions and commentary on a number of subjects,” said Vigodman.
Vigodman lists several points from Courey’s letter along with clear rebuttals. The first is in regards to Mylan’s refusal to allow stockholders to consider the Teva proposal. “You have continued to take steps toward a vote on the Perrigo transaction while pretending that a more attractive and valuable option does not exist. You have been quoted as saying in analyst meetings that you intend to put your stockholders in a ‘tough place’ by forcing them to consider the Perrigo transaction without allowing them to consider the Teva proposal,” said Vigodman.
Vigodman’s second point was Mylan’s unwillingness to provide stockholders with complete information about the proposals. Vigodman said, “You are asking your stockholders to vote on the Perrigo transaction with a lack of transparency, depriving them of a fair and honest financial analysis of the Teva proposal as compared to the proposed Perrigo transaction. At the same time, you continue to make confounding statements about wanting to be acquired by Novartis or Pfizer.”
On the topic of governance, Vigodman said, “You have repeatedly said that the Mylan board is able and willing to use Mylan’s unprecedented governance structure to prevent a serious buyer from succeeding in a transaction. These statements are both inconsistent with Dutch corporate governance standards and misleading to Mylan’s stockholders. Your comments are merely aimed at frustrating Teva and denying your stockholders the ability to consider the Teva proposal.
“You have continually made grossly incorrect statements about Teva to mislead your stockholders and other stakeholders about us. There is nothing unclear or equivocal about Teva’s intentions. We have a clear roadmap to deliver on our proposal, and we remain committed to taking all of the steps necessary to deliver the exceptional benefits of this combination to the stockholders of Mylan and Teva, as well as the other stakeholders of both companies.
Vigodman said, “While our desire remains to reach agreement on a transaction, we will continue to take the steps necessary to accomplish our proposal, which will create substantial long-term value and an opportunity to better serve our respective patients, customers, employees and communities around the world.”