Shares of Mylan Inc. (NASDAQ: MYL) retreated first thing Monday morning, after the generic drugmaker’s sweetened bid for Swedish drugmaker Meda was rejected.

The latest bid is said to have valued Meda at around $6.7 billion, or a premium of about 50% over Meda’s share price before news of Mylan’s original approach earlier this month. At issue for the Meda board was that the company’s largest shareholder, Stena Sessan Rederi AB did not back the deal. Meda’s chairman, Bert-Ake Eriksson, is also the CEO of shipping company Stena Sessan Rederi, which is controlled by the Olsson business family and holds a 22.77% stake in Meda.

Though the board said it was confident in Meda’s future as an independent company, the maker of over-the-counter drugs and branded generics has long been viewed as a takeover target, due in part to its new allergy medicine Dymista and to its growth in emerging markets.

Mylan was believed to be looking to expand its respiratory treatment business, to gain a foothold in Russia and perhaps to reduce its tax burden by relocating its headquarters abroad. Back in December it expanded overseas by acquiring India’s Agila Specialties for $1.6 billion.

Mylan shares were down 3.7% in Monday morning trading, at $50.16 in a 52-week range of $27.77 to $57.52.

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