Perrigo Company (NYSE:PRGO; TASE:PRGO) today responded in scathing terms to the announcement that genetics pharmaceuticals manufacturer Mylan N.V. has lowered the acceptance condition for its hostile bid to acquire Perrigo from "not less than 80% of Perrigo ordinary shares to greater than 50%."
Perrigo chairman, president and CEO Joseph C. Papa said, "Mylan already proposed a dilutive deal that substantially undervalues Perrigo; today's announcement makes it even worse. This scare tactic is simply an attempt to coerce Perrigo shareholders into a value destructive deal. We don't believe Perrigo shareholders will tender into this transaction at any threshold and we are confident that there is no rational path to a full acquisition of Perrigo."
He added, "This move is an obvious sign of desperation that would have profoundly negative effects for shareholders, debt holders, customers and employees of both Perrigo and Mylan. Under Irish law, this structure all but guarantees that the promised synergy realization will fail and it would create material credit and equity risk for both companies - none of which Mylan has detailed to its own shareholders or ours."
Papa continued, "This reckless action runs contrary to the best interests of both Perrigo and Mylan shareholders, taking a value destructive transaction and making it materially worse when Mylan fails to achieve the 80% threshold necessary for consolidation. This is yet another example of Mylan's leadership disregarding their fiduciary responsibilities to represent the best interests of shareholders."
Published by Globes [online], Israel business news - www.globes-online.com - on August 13, 2015
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