Teva to buy Allergan's generic drug unit

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) abandoned its hostile bid for Mylan (Nasdaq: MYL) and has offered $40.5 billion in cash and stock to buy Allergan's (NYSE: AGN) generic drug business. Shares of Teva surged $8.73 to $70.58 while Mylan stock plummeted $9.96 to $55.98. Allergan stock leaped $18.90 to $327.11.