Mylan NV moved its corporate domicile overseas earlier this year in order to lower the amount of U.S. taxes it pays, but it is now asking the government in the U.S. for help in fighting off a hostile takeover.
Thus far, there has been no answer from the government. The maker of generic drugs relocated this past February through a tax inversion transaction, which is a maneuver that received great criticism from the U.S. government for letting companies in the U.S. to cut their tax bills.
Mylan, which is now incorporated in the Netherlands, is pushing officials in antitrust in the U.S. to clarify whether Teva Pharmaceuticals should be allowed to purchase 4.61% in the company.
If the company were to be considered an American issuer, the deal would need the clearing of antitrust officials in the U.S.
Heather Bresch the CEO at Mylan said she is aware that the tax inversion invoked both political and emotional banter but the reality of the matter is the company remains an U.S. issuer under the formal and informal guidelines. What the company has said, added Bresch is you cannot be capricious and arbitrary.
Mylan is attempting to fend off a takeover offer of $40.1 billion from its rival based in Israel, which has been able to amass a stake in Mylan. With the investment, Teva would be able to take a case to court in Holland and vote against the bid for Mylan for the smaller competitor Perrigo Co.
Typically, when a company in the U.S. buys a percentage in another that is over $76.3 million, the transaction must be reported to antitrust officials who then will review such a purchase.
An exemption exists however for acquisition made by foreign companies.
