Monday, May 14, 2007

Mylan's Shareholders Act As LBO Lenders

by Jon C. Ogg
24/7 Wall St.



Mylan Labs (MYL) is seeing its shares take a beating because it is acquiring Merck KGaA's generic unit and Mylan is the acquirer in what is a very leveraged buyout. It isn't just the fact that there will be dilution, it's the fact that the leverage today and tomorrow is going to be a large burden for years ahead. This also just took away almost any shot that Mylan Labs could ever be considered a potential takeover target itself.

The company is taking 2 steps back to jump 6 steps forward and the 6 steps forward won't come for several years.


Continue article at 247WallSt.com




RELATED READING:
- Pfizer and Mylan Fight to Defend Norvasc Exclusivity
- FDA Refuses to Approve Any ANDAs for Generic Norvasc Besides Mylan's

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