Report: Mylan Could See Sweetened Bid From Teva Pharmaceutical

Teva Pharmaceutical Industries Ltd (NYSE: TEVA) will soon sweeten its $40 billion bid for Netherlands-based Mylan Inc (NASDAQ: MYL) and may resort to Dutch courts if the offer gets rejected, according to a report Wednesday.

Mylan changed hands recently up about 1.7 percent at $71.72.

Teva may offer additional cash, a "collar" to protect against a decline in share price and a guarantee to complete the transaction, according to the New York Post, which cited anonymous sources "close to the situation."

Teva will launch the new bid prior to Mylan's July annual meeting, the report said.

Mylan rejected Teva's bid April 27 and instead wants to acquire Perrigo Co. (NYSE: PRGO) for $32.7 billion. Perrigo has rejected Mylan's offer.

Billionaire John Paulson boosted his stake in Mylan to 4.5 percent last month, from about 3 percent, touching off speculation that he may push for a sale.

The Post noted that Paulson and fellow hedge fund Centaurus Capital sued Dutch conglomerate Stork in 2007 after it fought their plan to sell off parts of the company.

If Teva's new bid fails, it may follow a similar litigation strategy in the Dutch courts, sources told the Post.