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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.




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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