Teva Pharmaceutical raised its stake in Mylan above 3 percent, a milestone that, according to Dutch corporate law, gives it power to submit agenda items at shareholders’ meetings.
According to Bloomberg, this move ranks Teva as Mylan’s eighth-largest investor as the Israeli drugmaker continues its push to by its rival Mylan for a current price of $40.1 billion in cash and stock.
In April, Mylan put an arcane legal structure known as a "stichting" in place. According to the WSJ, stichtings are often used as a defense against hostile takeovers, similar to a U.S. poison pill. A company sets up a stichting and gives it the option to acquire preferred shares with voting rights equal to half of all outstanding shares of common stock in the case of a hostile bid.
Teva insists that its acquisition of Mylan's shares are within the Dutch law. Teva's next key goal will be to accumulate a 4.6 percent stake, which will allow it to initiate inquiry proceedings before the Dutch Enterprise Chamber.
Read the Bloomberg article