Teva Stock Declines Following Luke Warm Coverage Initiation

NEW YORK (TheStreet) -- Teva Pharmaceuticals (TEVA) shares are down 0.5% to $60.37 in early market trading on Wednesday after the stock was initiated with a "market perform" rating by analysts at Raymond James today.

The initiation comes as the company looks to increase its stake in rival and takeover target Mylan (MYL), who has previously rejected the company's $82 per share $40 billion merger bid, according to Reuters.

Last week the company revealed a 1.8% stake in Mylan, which is currently waging its own unsuccessful takeover bid of generic drug maker Perrigo (PRGO). 

In response to Friday's revelation, Mylan executive chairman Robert Coury wrote a letter to Mylan CEO Erez Vigodman stating in part, "It is time for Teva and its board to stop playing games with our company, its business, mission and strategy and its stakeholders."

"Teva and its board must stop pursuing what amounts to nothing more than an illusory alternative for our shareholders to the Perrigo transaction (as there is no formal offer or clear path to completion for a Teva transaction,)" he continued.

Additionally, Mylan has accused Teva's 1.8% stake as breaching U.S. antitrust regulations prohibiting the acquiring of stakes exceeding $76.3 million in rivals without first receiving regulatory approval.

Mylan claims that Teva's stake in the company exceeds that level. 

TheStreet Ratings team rates TEVA PHARMACEUTICALS as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

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