Teva Pharmaceutical Industries Ltd rejected the rumours of having chosen a new Chairman. This happened after the activist investor Benny Landa said that the Vice Chairman Mr. Amir Elstein was chosen as a replacement to the departing Chairman Mr. Phillip Frost.
Benny Landa wrote on his blog in a post dated July 13, that was cited by Bloomberg: “Even though the board claims to have hired a reputable search firm to identify credible succession candidates, I was informed yesterday by Moshe Many, Amir Elstein’s predecessor as vice chairman, that the board has already decided that it will name Amir Elstein as the next chairman.” He added: “We insist on proper corporate governance – and expect the board composition to be upgraded. Teva should name a chairman of international repute, befitting the position.”
The rumours come at a time when Teva Pharmaceutical Industries Ltd is once again confronting its shareholders. This happened after the drug manufacturer was accused by its activist investor Benny Landa of not keeping its promises to work on making its management structure and corporate governance better.
The blog post of Mr. Landa was considered as an incitement for further reforms at the company. The urging from the activist investor comes about half a year after Teva said that it plans to reshuffle its corporate governance and promised to improve its financial results.
Mr. Landa also sent a letter to fellow shareholders right ahead of their annual meeting that is scheduled on July 30th. As reported by the Financial Times, he wrote in the letter: “There appears to be no limit to this board’s disregard for proper corporate governance and its disdain for shareholder views or interests.”
When it comes to the rumours of the company appointing a new Chairman, Mr. Raz Meirman, who is a spokesman of Teva Pharmaceutical Industries Ltd, said in an official e-mailed statement dated July 14th that “no decision has been made regarding the identity of Teva’s next chairman”. The company revealed earlier that Mr. Phillip Frost is planning to retire before the end of his term in 2015.
Teva Pharmaceutical Industries Ltd was losing 0.32% to trade at 18,660 Israeli new shekel per share by 5:09 ET, marking a one year change of +31.50%.
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