April 17, 2015 / 7:31 PM / 4 years ago

UPDATE 1-Mylan says merger with Teva would be bad fit

(Recasts with Mylan comment, adds Teva declining to comment, background, share moves)

By Bill Berkrot

April 17 (Reuters) - Generic drugmaker Mylan NV moved quickly on Friday to pour cold water on published reports that Teva Pharmaceuticals Industries is considering a bid to acquire it.

Mylan last week announced a $29 billion offer to buy Perrigo Co Plc in a move that some analysts suggested was a tactic to help fend off an acquisition by larger rival Teva.

Mylan Executive Chairman and former Chief Executive Officer Robert Coury said the Perrigo plans remain on track.

“Mylan is fully committed to its stand-alone strategy, including its proposal to acquire Perrigo, and today’s speculation has no impact whatsoever on this strategy,” Coury said in a statement.

“We have studied the potential combination of Mylan and Teva for some time and we believe it is clear that such a combination is without sound industrial logic or cultural fit. Further, there would be significant overlap in the companies’ businesses and we believe that it is unlikely that any such combination could obtain antitrust regulatory clearances,” Coury said.

Teva spokeswoman Denise Bradley declined to comment on the rumor that the world’s largest generic drugmaker was considering a bid for Mylan. The speculation was reported by Bloomberg and the Wall Street Journal.

Teva has not made a formal approach to Mylan, Bloomberg reported.

“Of course, should any party make an actual offer to acquire Mylan, the board would carefully consider it in exercising its fiduciary duties in the best interests of the company, our stockholders and other stakeholders,” Coury said.

Israel-based Teva has a market value of about $64.4 billion and annual revenue of about $20 billion.

Mylan, which moved its headquarters from Pittsburgh to the Netherlands in a so-called inversion deal to take advantage of lower taxes outside the United States, has a market value of about $32.7 billion and annual revenue of about $7.7 billion. A Mylan/Perrigo combination would have annual revenue of about $15 billion.

Mylan shares were up 4.3 percent at $69.72 on a sharply down day for the broader markets, while Teva shares trading in New York were up 2 percent at $64.72. Shares of Perrigo were down 1.6 percent at $195.79. (Additional reporting by Reporting by Ankur Banerjee in Bengaluru; Editing by Savio D’Souza and Jonathan Oatis)

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