Analyst: Mylan Shareholders Might Get Convinced By Vigodman Letter

Teva Pharmaceutical Industries Ltd. TEVA's letter to Mylan NV MYL suggests "much more commitment to pursuing a deal than we previously thought," an analyst said Thursday.

Oppenheimer's Akiva Felt maintained an Outperform rating and $77 target on Teva and said the letter makes "an indirect but persuasive appeal to Mylan's shareholders."

Mylan rejected Teva's $82-a-share cash and stock bid on Monday.

Mylan changed hands recently at $72.26, off 3 percent.

Teva's Chief Executive Erez Vigodman reiterated his company's $40 billion offer for Mylan in a letter Wednesday, which took Mylan to task for "mud-slinging and mischaracterization."

In rejecting Teva's offer Monday, Mylan's Chairman Robert J. Coury had said Teva is burdened by "a problematic culture and leadership" while Teva shares are "low quality."

Vigodman disputed the antitrust concerns raised by Coury and called Teva's offer "more attractive" than alternatives.

"This is a message we are hearing from more and more stockholders of Teva and Mylan," Vigodman said.

Felt said Vigodman's "willingness to take the high road" Wednesday is "classy" and signals that Teva is "much more committed to pursuing the deal than we though previously."

For its part, Mylan raised its offer for Perrigo Co. PRGO by 10 percent to $242 a share, which was again rejected Wednesday.

The Perrigo offer is seen by some investors as a means for Mylan to fend off Teva.