Swedish generic drugmaker Meda has rejected a takeover approach by U.S. rival Mylan to create a combined company worth around $24 billion.

Reports said Mylan was exploring a bid at a significant premium. The Swedish company, which had already said it wanted to make a big acquisition this year, said it was "considering a wide range of possible opportunities," but would not comment further.

"Given that this deal makes too much financial sense for both parties, we believe that there is an exceedingly high likelihood that it still will occur," analysts said.

Meda, which makes specialty products, over-the-counter drugs and branded generics, has long been viewed as a takeover target in a rapidly consolidating generics drug sector where economies of scale are important.

If any deal was pitched at a level similar to Actavis's bid for Forest Labs in February, it would imply a 25% premium to the Swedish company's share price before the news, the reports said.

Buying Meda would boost Mylan's presence outside the U.S. and give it access to distribution channels in Europe and some emerging markets, where Meda has grown quickly in recent years.

An acquisition would also boost Mylan's position in specialty pharmaceuticals where it focuses on respiratory and allergy medicines, which is a key area for Meda as well.

Of Meda's $2 billion sales in 2013, more than 80% were outside the United States.

Among potential buyers, Mylan was well placed to make a move, the news agency Reuters quotes bankers and analysts as saying. The company could also take advantage of lower corporate tax rates as the purchase would increase the percentage of revenues coming from overseas, allowing it to move its tax domicile outside of the U.S.

A year ago India's Sun Pharmaceutical Industries Ltd held talks to buy Meda for $5-6 billion in a bid to boost its generics business in developed markets, sources with knowledge of the matter said at the time.

Analysts in Mumbai said they doubted Sun would be interested in buying Meda now, since the talks last year founded mainly on valuation and Meda's stock price has risen sharply since its $4 billion market valuation at the time.

Meda's biggest owner is Stena Sessan Rederi, controlled by the Olsson business family, which owns 22.7% of shares, meaning it could block any takeover attempt.