Mylan Said to Raise Meda Takeover Offer to 44 Billion Kronor

Apr 25, 2014 4:15 pm ET

(Updates with closing share price in seventh paragraph.)

April 25 (Bloomberg) -- Mylan Inc., the biggest U.S. maker of generic medicines, raised its offer for Swedish drugmaker Meda AB to about 43.8 billion Swedish kronor ($6.7 billion), people with knowledge of the matter said.

An all-stock offer of 145 kronor a share was sent this week, said the people, who asked not to be identified discussing confidential information. A previous Mylan bid was rejected by Meda, the Swedish company said on April 4, without saying why or what the offer was. Before the first offer became public Meda was worth about 23.9 billion kronor.

The current offer is about a 50 percent premium to that price. Mylan’s goal is to bring Meda to the table and begin negotiations, instead of being rejected again, according to one of the people.

Meda would help Mylan expand in generic and branded respiratory and dermatology drugs, and strengthen its position in emerging markets and Europe. Generic-drug makers have been consolidating and buying up new assets as a way to broaden their revenue to include more profitable brand-name drugs and injectable medicines that face less competition.

Sweden’s billionaire Olsson family, which owns shipping, offshore-drilling, finance and property companies, holds a 23 percent stake in Meda through Stena Sessan Rederi AB. Meda Chairman Bert-Ake Eriksson is Stena Sessan’s CEO.

Nina Devlin, a spokeswoman for Canonsburg, Pennsylvania- based Mylan, and Paula Treutiger, a Meda spokeswoman, declined to comment. The raised offer was reported earlier by the Financial Times.

Largest Deals

Meda’s shares were halted in Stockholm trading, after closing yesterday at 128.5 kronor. Mylan gained 3.5 percent to $52.10 at 4 p.m. New York time.

Actavis Plc, a Dublin-based drugmaker with operations in New Jersey, in February agreed to buy Forest Laboratories Inc. for $25 billion. Valeant Pharmaceuticals International Inc. has been gobbling up drug and health-products companies as it seeks to grow into one of the world’s five biggest drugmakers.

Valeant this week teamed with Bill Ackman, the billionaire hedge fund manager, in a $45.7 billion bid to buy Allergan Inc., the maker of the Botox cosmetic treatment.

--With assistance from Makiko Kitamura in London.