Another investor has entered the increasingly complicated effort by
He is Richard C. Perry, a New York investment manager, who supports the proposed acquisition. Perry said in a Monday filing with the
Securities and Exchange Commission
that he owns 26.63 million shares of Mylan, giving him 9.89% of the stock and making him the largest shareholder.
Perry has slightly more shares than does investor Carl C. Icahn, who holds 26.29 million shares, or 9.78%, and who bitterly opposes the King-Mylan deal.
Icahn says Mylan is overpaying for King. He has threatened to run a slate of directors against Mylan's directors unless Mylan cancels its bid. Earlier this month, Icahn offered to buy all of the Mylan shares that he doesn't own for $20 a share. Mylan's board of directors rejected the proposal.
Perry is president of Perry Corp., a registered investment adviser that provides asset management services to private investment funds. His firm also owns 7 million shares, or 2.9%, of King's stock, according to the latest available information. (Icahn recently revealed that he has been shorting King's stock, betting that the shares would go down. He didn't say how many shares were involved).
Perry's SEC filing said that due to Icahn's proposal on Nov. 19 to buy all of Mylan's remaining shares, Perry affirms his "present support" for the King-Mylan deal. As a Mylan investor, Perry "may be deemed now to hold the shares with an intent of influencing the company," the SEC filing said.
The SEC filing shows that Perry, in his role as investment adviser or general partner of investment funds, has been buying and selling Mylan stock at a furious pace since Sept. 20, sometimes with multiple transactions in a single day. He sold shares 27 times and bought shares 47 times between Sept. 20 and Nov. 22.
Mylan made a bid for King on July 26, offering 0.9 share of Mylan stock for each share of King stock, and
Icahn began buying Mylan shares the same day. Over time, he has enlisted the support of another large shareholder, UBS Global Asset Management, which owns 10.5 million shares, or 3.9%, according to the latest available data.
But Mylan's management has steadfastly reaffirmed its desire to complete the deal even though many Wall Street analysts aren't thrilled and even though King continues to stumble financially and awaits decisions on investigations from the Department of Health and Human Services and the SEC. Some analysts believe that Mylan has expended so much energy on the King deal that
it might be vulnerable to a takeover from another drug company.
Mylan's stock closed Monday at $18.34, losing 26 cents, or 1.4%. King's stock closed at $11.59, dropping 25 cents, or 2.1%.