Mylan Moves to Cancel `Stichting` Takeover Defense
September 21 2015 - 9:00AM
Dow Jones News
Mylan NV said Monday that it has moved to cancel an obscure but
powerful legal vehicle called a "stichting" that the drug company
adopted earlier this year when it was fending off takeover attempts
from Teva Pharmaceutical Industries Ltd.
Stichting is a centuries-old Dutch legal structure that has
become a popular self-defense tool for companies and wealthy
individuals. In April, a Dutch law firm submitted paperwork on
Mylan's behalf to the Netherlands trade registry to create a
stichting.
The entity, named Stichting Preferred Shares Mylan, is
essentially an empty shell. But it possesses special powers, thanks
to a shareholder-approved provision tucked into the paperwork for a
previous Mylan acquisition: If Mylan ever receives an unsolicited
takeover bid, the stichting can get veto rights over any
takeover.
Mylan said Monday that it has moved to cancel the preferred
shares issued to the entity in July, as the threats to the company
"have been sufficiently addressed."
Cancellation of the shares must be approved by Mylan
shareholders.
Teva dropped its pursuit of Mylan in late July when it agreed to
buy Allergan PLC's generics unit for $40.5 billion in cash and
stock.
Meanwhile, Mylan continues its hostile pursuit of Perrigo Co.,
taking its bid directly to the company's shareholders last
week.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 21, 2015 08:45 ET (12:45 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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