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Mylan said stichting no more needed as threats have been addressed

Staff writer |
Mylan said it has moved to cancel legal vehicle called a "stichting" that the drug company adopted earlier this year when it was fending off takeover attempts from Teva Pharmaceutical Industries.

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Mylan said the threats to the company “have been sufficiently addressed.” Cancellation of the shares must be approved by Mylan shareholders.

Stichting is a centuries-old Dutch legal structure that has become a popular self-defense tool for companies and wealthy individuals. In April, a Dutch law firm submitted paperwork on Mylan’s behalf to the Netherlands trade registry to create a stichting.

The entity, named Stichting Preferred Shares Mylan possesses special powers, thanks to a shareholder-approved provision tucked into the paperwork for a previous Mylan acquisition: If Mylan ever receives an unsolicited takeover bid, the stichting can get veto rights over any takeover.

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