Three way takeover battle: Abbott Labs to back Mylan’s acquisition of Perrigo

Abbott Laboratories (NYSE: ABT), said it would back the generic pharmaceutical company Mylan’s (MYL) $34 billion bid acquisition of Perrigo Co Plc (PRGO.N). Abbott Lab potentially helping Mylan forfend $40 billion offer by Teva Pharmaceutical Industries Ltd (NYSE: TEVA; TASE: TEVA).

At the same time Teva continues buying Mylan stock and has built its shares up to 3.7% and plans reaching a 4.6% holding.

Since other Mylan’s shareholders oppose buying Perrigo, Teva’s deal could yet go through.

Abbott, with its 14.5 percent stake in Mylan, said on Tuesday: “We are very pleased that, while Abbott is under no obligation to do so, Abbott has voluntarily chosen to express its support of Mylan, ” announced Abbott Chief Executive Miles White, “our strategic growth plan and stand-alone strategy, and our proposed combination with Perrigo. When we acquired Abbott’s non-U.S. developed markets specialty and branded generics business earlier this year, we gained an important stakeholder in Abbott, which understands the powerful potential of our platform, and the critical importance of our scale and breadth across our distribution channels. We are grateful for Abbott’s support of our long-term vision, which we firmly believe will continue to deliver strong near-term and long-term returns in this rapidly evolving industry and will promote the sustainable success of Mylan’s business.”

Abbott added that it supports Mylan remaining an independent company and thinks that buying Perrigo will benefit shareholders.