Shares of Mylan pharmaceuticals spiked by as much as 10% in pre-market trading following reports that it may be involved in the largest takeover deal in the industry this year.
Teva pharmaceuticals is preparing an unsolicited offer for the drugmaker and could announce the proposal as soon as Tuesday, according to Bloomberg.
The details are not final and it’s still possible that the deal could fall apart, Bloomberg reported.
Teva shares rose by more than 3% in pre-market trading.
Mylan’s chairman Robert Coury released a statement last week on initial reports of the deal, saying:
“We have studied the potential combination of Mylan and Teva for some time and we believe it is clear that such a combination is without sound industrial logic or cultural fit. Further, there would be significant overlap in the companies’ businesses and we believe that it is unlikely that any such combination could obtain anti-trust regulatory clearances.”
Coury added that if the company was actually approached, its board will consider the deal in the best interests of stockholders.
There have already been a number of huge buyout offers and deals among pharmaceuticals and biotechs this year.
Mylan offered to buy Perrigo for $US205 per share in a deal worth $US28.9 billion.
And late last month, Teva Pharmaceuticals announced it will acquire Auspex Pharmaceuticals at $US101 per share in cash.