US: Mylan questions FTC’s foreign treatment

Mylan NV, which moved its corporate address overseas this year to lower its US taxes, is now asking the American government to weigh in on its battle with Teva Pharmaceutical Industries.

At issue is whether the Federal Trade Commission should consider Mylan a foreign or a U.S. issuer. Mylan argues it should pass the test of being treated like an American company under federal regulations because its principal offices are in Canonsburg, Pennsylvania. If Mylan were treated as an American issuer, the deal would need to have been cleared by U.S. antitrust officials.

“We know the inversion has invoked a lot of emotional and political banter but the reality is we remain a U.S. issuer under all of the formal and informal guidelines,” Mylan Chief Executive Officer Heather Bresch said in an interview. “What we’ve said is you can’t be arbitrary and capricious.”

Mylan adheres to the same U.S. Securities and Exchange Commission rules as American issuers, she said.

The generic drugmaker is trying to fend off a $40.1 billion takeover offer from its Israeli rival, which has amassed a stake in Mylan to step up its pursuit. With that investment, Teva will be able to bring a case against Mylan in a Dutch court and will have the ability to vote against Mylan’s bid for smaller competitor Periego.

Full content: Bidness Etc.

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.