NEW YORK – Mylan Laboratories Inc.'s (MYL) board on Monday said it does not believe talks with financier Carl Icahn (search) about his unsolicited proposal to buy the company are in Mylan's best interest, saying the company is best served by remaining independent.
"We do not believe that Mr. Icahn's letter by any means constitutes a serious offer for the company," Mylan Chairman Milan Puskar said in a statement.
Puskar's statement comes in response to Icahn's offer, made Friday, to buy the remaining portion of Mylan shares he does not already own for about $4.9 billion, or $20 per share.
Mylan also repeated on Monday that it is committed to the acquisition of King Pharmaceuticals Inc. (KG).
Icahn, Mylan's largest shareholder, opposes the company's proposal to buy King Pharmaceuticals Inc. for about $3.37 billion.
Icahn's offer for Mylan represented a premium of more than 16 percent over Mylan's closing price the day before his offer became public. Mylan shares gained 10 percent Friday to close at $18.88 on the New York Stock Exchange. King closed at $11.15.
"Based on our ongoing review of the options available to Mylan, we are committed to maintaining the company's independence and continuing to execute on our stated, long-term strategy," Puskar said.
"Unlike Mr. Icahn, whom we believe has a short term focus, we continue to believe firmly that a business balanced between the generics and brand business offers the greatest potential for stable short-term and long-term growth and will create substantial value for our shareholders," Puskar said.
Icahn has amassed a stake of nearly 10 percent since Mylan set plans to purchase King. Through his investment company, High River LP, he has been leading a proxy fight to derail the deal.
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