Generic drug maker Actavis Inc (NYSE:ACT) is reported to have spurned a $15 billion cash and stock acquisition offer from Mylan Inc. (NASDAQ:MYL).

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According to Bloomberg, Actavis Inc (NYSE:ACT) would decide instead to pursue talks to take over the Irish drug maker Warner Chilcott Plc (NASDAQ:WCRX).

Earlier, Watson Pharmaceuticals completed its acquisition of the then Switzerland-based privately-held Actavis Group in a deal valued at about 4.25 billion euros or $5.6 billion in October. It then renamed itself Actavis, Inc.

Following the Watson-Actavis deal, Actavis became the second largest global generic drug maker and the largest in the U.S. Prior to the deal, the world’s largest generic drug maker was Israel’s Teva Pharmaceutical Industries Ltd (TEVA), followed by Mylan Inc. (NASDAQ:MYL) and Swiss drug giant Novartis AG (NYSE:NVS)’s unit Sandoz.

Bloomberg reports that prior to Actavis’ pursuit of Warner, Mylan Inc. (NASDAQ:MYL) had offered $15 billion in cash and stocks for Actavis, which would have valued the company at $120 per share.

In its May 7 letter, Mylan Inc. (NASDAQ:MYL) reportedly offered to acquire Actavis Inc (NYSE:ACT) for $120 per share, but the offer was spurned a couple of days later. The deal would have created the world’s largest generic drug manufacturer.

Canonsburg, Pennsylvania based Mylan Inc. (NASDAQ:MYL) in its May 7letter emphasized the cost savings that would accrue if the two large generic drug makers were merged. However a couple of days later, Actavis has reportedly rejected the offer as Mylan was offering more stock than cash.

Mylan too is currently no longer actively pursuing a deal for Actavis Inc (NYSE:ACT) after its shares rose above the offer price over the past week, closing Tuesday’s trading session at $121.68.

Citing unnamed sources, Bloomberg also said that Israel-based generic drug giant Teva Pharmaceutical Industries Ltd (NYSE:TEVA) also reportedly was interested in Actavis.

A few weeks ago, the New Jersey-based Actavis Inc (NYSE:ACT) itself was on the verge of another potential $13 billion merger-of-equals deal with Canadian drug maker Valeant Pharmaceuticals Intl Inc (NYSE:VRX). However the talks were put on hold by Actavis in late-April to pursue the Warner Chilcott deal and as they failed to agree on terms of a deal.

Meanwhile, Actavis is currently in talks to acquire smaller rival Warner Chilcott Plc (NASDAQ:WCRX) in a deal of about $5.5 billion. Both the companies had confirmed on Friday that they are in early stage discussions about a potential business combination. A deal could be struck over the next few weeks.