Meda Rejects Mylan's Takeover Proposal
On Friday, April 4, Meda confirmed that it had been contacted by Mylan (NASDAQ: MYL) regarding an acquisition deal to merge the two companies together. Additionally, the company came out and said that the Swedish drugmaker was rejecting the proposal.
Meda issued a statement saying, “Discussions between Meda and Mylan have been terminated without further actions.” The company did not comment on why it had rejected the proposal.
Shares of Mylan leaped up more than 12 percent to nearly $55.30 -- following news of the rejection shares plummeted and nearly lost all gains. Shares of Meda also leaped up 16 percent, but later settled down.
Mylan has been acquiring companies since December, 2013, when it bough out Agila Specialties for $1.6 billion. This February in Mylan's earnings report, Chief Executive Officer Heather Bresch, stated that the company will continue to carry out another substantial acquisition this year. Bresch continued to say, “'As we move into 2014, we expect that our financial flexibility will provide further opportunities to expand our business in strategic areas and create additional value for our shareholders.”
Mylan currently has a market capitalization of $18.5 billion, while Meda has a market capitalization of $4.5 billion.
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