Teva ‘readying improved bid for Mylan’

Teva could be set to launch a new and improved bid for fellow generics manufacturer Mylan this week, according to a report.

People with knowledge of the matter have told Bloomberg that Teva will be upping its bid to around $43 billion (27.87 billion pounds), up by as much as $2 billion. This offer would represent a price of between $86 to $88 per share.

In April, Israel-based Teva offered to purchase Mylan for $82 a share, valuing the US company at around $40.1 billion. It is hoping to close a deal in order to consolidate its leading position in the generic drugs market.

However, Mylan has rebuffed all of Teva's overtures to date, stating that the bids undervalue the company. In response, it has stepped up its own efforts to purchase the Irish multinational Perrigo, which would strengthen its own position as a standalone business.

The Perrigo deal is yet to go through, though key Mylan shareholder Abbott Laboratories has come out in favour of the planned acquisition. Future developments are likely to be contingent on the confirmation of a fresh bid from Teva.