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Abbott to vote for Mylan's acquisition of Perrigo

Staff writer |
Mylan's, Abbott Laboratories, said it would back Mylan's proposed acquisition of Perrigo, potentially helping Mylan fend off interest from Teva Pharmaceutical Industries.

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Abbott, which has a 14.5 percent stake in Mylan, said that it supported Mylan's "standalone strategy" and believed acquiring Perrigo would add value for shareholders.

Mylan's latest offer for Perrigo, worth $34.1 billion, is widely seen as an attempt to fend off Teva, the world's biggest maker of generic drugs. Perrigo rejected Mylan's sweetened offer in late April, around the same time Mylan rejected an offer of $40 billion from Teva, saying it grossly undervalued the company.

Last year, Mylan said it would buy Abbott's branded specialty and generics business in developed markets outside the United States in a $5.3 billion deal that would bolster its product line and cut its tax bill.

The deal gave Mylan an array of Abbott brands with sales of almost $2 billion, while Abbott received 105 million shares of the combined company, renamed Mylan.

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