Mylan tender for stock oversubscribed at $19.50, exercises option to buy 2% more

By Jennifer Chiou

New York, July 18 - Mylan Laboratories Inc. said its Dutch auction tender offer for its stock was oversubscribed at a price of $19.50 per share and added that it has exercised its right to buy an additional 2% of its outstanding shares.

Based on the preliminary count, 54,647,714 shares were properly tendered and not withdrawn at or below a price of $19.50, including 48,665,373 shares that were tendered through notice of guaranteed delivery.

Mylan said it will accept 51,282,051 of the common shares at $19.50 per share.

The total is made up of the 48,780,487 shares Mylan offered to purchase and 2,501,564 shares under its right to accept an additional 2% of its outstanding shares as of June 14.

As of June 14, the total amount accepted accounts for about 19% of Mylan's outstanding shares.

According to the depositary's preliminary count, 25,311,398 shares tendered at prices between $19.75 and $20.50 per share are expected to be returned and 3,325,663 shares tendered at prices of $19.50 or below are also expected be returned to shareholders due to proration.

The offer expired at midnight ET on July 15.

Mylan launched the tender on June 16 saying it would accept offers to sell its stock at between $18.00 and $20.50 per share. It said it would determine the lowest price in the range to buy up to 48,780,487 shares.

The Canonsburg, Pa., company, which develops and distributes generic and brand pharmaceutical products, said there was a tender received by notice of guaranteed delivery for 26,291,200 shares at or below a price of $19.50 per share and it expects to purchase 24,713,728 of the shares from that tender. It said the identity of the shareholder was not disclosed but added that entities controlled by Carl Icahn reported owning approximately that number of shares in a filing with the Securities and Exchange Commission - and in a release after the tender results were disclosed Icahn confirmed that was the case.

"There is no question that shareholder activism has worked well to enhance shareholder value at Mylan," Icahn said in the release.

He noted that since he began his criticism of Mylan's actions, particularly its now-abandoned intention to acquire King Pharmaceuticals, the company has left behind its planned acquisition, announced the $1.25 billion share buyback, doubled its dividend rate, taken steps to exploit Nebivolol through a major distribution partner and announced the retirement of two of its non-independent directors.

The company's stock, meanwhile, has risen 32%,

But Icahn also said he believes Mylan could enhance shareholder value further if it were put up for sale and consolidated with a larger company.

Mylan's stock closed down $1.02 at $18.38 on Monday.

Morrow & Co., Inc. was the information agent (800 607-0088) for the offer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.