By Lisa Beilfuss
Abbott Laboratories said Tuesday that it intends to vote its
14.5% stake in Mylan NV in favor of Mylan's proposed acquisition of
rival Perrigo Co., a move for Mylan to help it fend off a potential
takeover of its own.
"As both Mylan's largest shareholder and its partner through our
continued manufacturing relationships, we believe Mylan's
stand-alone strategy and acquisition of Perrigo will further
enhance its platform," Abbott Chief Executive Miles White said.
In a statement, Mylan CEO Robert Coury said he is "grateful" for
Abbott's support.
In an attempt to stay ahead of the frantic deal-making that is
reshaping the drug industry, U.K.-based Mylan in April made an
unsolicited $28.9 billion bid to buy Dublin-based Perrigo.
Mylan and Perrigo generally compete in different segments of the
generic-drug business. Mylan is best known for selling generic
prescription drugs, while Perrigo makes over-the-counter
cough-and-cold remedies and infant formula for chains like Wal-Mart
Stores Inc. and Walgreens, which sell the products under their own
names.
Mylan later raised its bid for Perrigo after Teva submitted a
rival offer. Teva's bid followed earlier speculation that the
Israel-based company was interested in acquiring Perrigo, and
Mylan's move to buy Perrigo is seen as an effort to avoid becoming
a target itself.
Abbott, based in Chicago, became Mylan's largest holder after it
exchanged its developed-markets generic drug business for Mylan
stock in a deal announced last July. In March, after the
transaction closed, Abbott said it cut its stake in Mylan by about
a third.
Mylan shares fell 1.1% in early trading, while shares in Perrigo
gained 2.2%.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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