UPDATE 2-Drugmaker Meda's shares fall back after it snubs new Mylan bid

Mon Apr 28, 2014 9:39am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Meda board says deal lacks support of biggest shareholder

* Meda shares drop 7.9 pct after rising 10 pct on Friday

* Approach comes against backdrop of healthcare M&A flurry (Adds detail, background, shares, quotes)

By Sven Nordenstam

STOCKHOLM, April 28 (Reuters) - Swedish drugmaker Meda rejected an improved takeover offer from U.S. generics firm Mylan which one person familiar with the matter said valued Meda at around $9 billion including debt, driving its shares sharply back down.

The new offer comes amid a flurry of deals in the industry as it restructures in the face of health spending cuts and cheap generic competition. U.S. firm Pfizer confirmed its interest in Britain's AstraZeneca on Monday in what would be one of the biggest pharma deals ever.

American drugmakers are also eyeing potential takeover targets abroad as they look to relocate their headquarters to other countries with lower tax rates.

Mylan's sweetened all-stock offer was worth 145 crowns per share, a person familiar with the matter said - which would represent a premium of about 50 percent over Meda's share price before news of the U.S. firm's original approach emerged earlier this month.

However the Meda board said the firm's biggest shareholder did not back a deal. Its biggest investor by far is Stena Sessan Rederi AB - controlled by the Olsson business family - which owns a 22.7 stake and can block any takeover attempt.   Continued...