Mylan Defends King Deal, Cites “Growing Appreciation” Among Investors
This article was originally published in The Pink Sheet Daily
Executive Summary
Investor feedback on merger is “positive,” Mylan says in response to attempt by investor Carl Icahn to block proposed deal. Mylan dismisses Icahn’s opposition as opportunistic.
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Mylan believes it is making progress in selling the proposed acquisition of King to investors. "Over the last few weeks, we have held over 100 institutional investor and major shareholder meetings," Mylan said Sept. 8. "Feedback from these meetings has been positive, which is reflective, we believe, of a growing appreciation of the compelling logic of the King transaction." Mylan announced the proposed acquisition of King July 26 (1 (Also see "Mylan To Pay $4 Bil. For King Ahead Of Launch Of Beta Blocker Nebivolol" - Pink Sheet, 26 Jul, 2004.)). The stock swap deal was valued at $4 bil. when announced. Mylan shares dropped by more than 15% following the merger announcement, but have since recovered most of that ground. Mylan re-emphasized its commitment to the King transaction in response to a Securities & Exchange Commission filing by investor Carl Icahn. Icahn filed a "13-D" statement Sept. 7 disclosing that he has purchased a 6.8% equity stake in Mylan. In the SEC filing, Icahn describes Mylan shares as "undervalued in the market place" and states that his "present intention is to oppose and solicit proxies against [Mylan's] proposed merger with King." Mylan dismissed Icahn's concerns as opportunistic. "Mr. Icahn, to our knowledge, has never owned Mylan shares prior to our announcement to acquire King, nor has he ever met with management to discuss its business." "It is unfathomable that Mr. Icahn...could reasonably conclude what is in the best long-term interest for all Mylan shareholders." "This conduct leads [Mylan] to believe that Mr. Icahn has an agenda designed to maximize his gains without regard for the long-term interests of all shareholders," the company declared. Mylan has scheduled a meeting with Icahn to discuss the company's strategy. - Michael McCaughan |