Report Sees 'Cognitive Dissonance' In Mylan's Internal Price Target

Mylan NV MYL told a would-be buyer recently that it's worth more than $100 a share, yet the company's current five-year incentive target for Mylan executives is $73.33.

Bloomberg recently pointed out the discrepancy revealed in Mylan's annual report filed April 30.

Bloomberg called the contradiction "cognitive dissonance" that Teva Pharmaceutical Industries Ltd (ADR) TEVA will "surely try to exploit."

Mylan said in its filing that if its shares hit $73.33 within five years, it "would represent an extraordinary achievement by our leadership team in such a short period of time."

But three days earlier, Mylan told Teva it won't entertain a merger "unless the starting point of the discussions is significantly in excess of $100 per share."

Teva has offered $82 a share.

Bloomberg pointed out that acquirers typically pay "a control premium."

But Mylan was trading at $59.57 prior to Teva's approach, "meaning Teva's opening offer was already 38 percent higher," Bloomberg calculated.

Shares of Mylan closed Monday at $73.08, down 1 percent.