The report from Spain that raised Teva’s share: Does Warren Buffett merge Teva and Meilan?
According to a report on the Spanish site, Buffett is promoting with the investment bank Credit Suisse a merger between the two generic drug companies. • Except for reporting on the Spanish site, similar reports were not published in other media
Is the merger of Teva and Meilan again on the agenda? A Spanish economic website, “Intereconomia”, reported at night that Warren Buffet, the billionaire who holds about 4% of Teva
(11.86 + 3.22%)
Through investment company Berkshire Altawai, is promoting, along with investment bank Credit Suisse, a merger between the two generic drug companies. Except for reporting on the Spanish site, no similar reports were published in other media outlets.
Four years ago, Teva tried to control Meilan
(19.67 + 1.29%)
A hostile takeover at a value of $ 40 billion for meilan. Teva bought Meilan shares at $ 70 per share, compared with $ 20 per share for the Meilan share today. Teva spent more than $ 1.5 billion on the acquisition of the shares, and later sold them at a loss.
Meilan fell more than 30% in recent days after it published weak quarterly reports. Teva lost 20% recently following the lawsuit filed against it for price adjustment in the US.
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According to the report, Buffett is preparing a proposal for the merger of Teva and Meilan, which will create a new “generic giant”. The report said that it was a very complicated move, and he hired Credit Suisse to advise him. It also said that due to antitrust, such a merger would require the sale of parts of the Meilan business before its completion. Buffett is already in contact with the Carlyle investment fund, which in the past has been linked to the possibility of buying parts from the company or the entire company.
One of the biggest losers on paper from the sharp falls in Teva’s share in recent days was Buffett. Thus, the quarterly report on Berkshire Hathaway’s holdings shows that at the end of the first quarter of 2019 it still held 43 million Teva shares, unchanged from previous quarters, although its holding value was cut by $ 283 million compared to the previous quarter. The current holding value is only $ 495 million.