Perrigo rejects Mylan's $29b takeover bid

Joseph Papa
Joseph Papa

The rejection assists Teva's $41 billion bid for Mylan, which is contingent on the Perrigo deal not going ahead.

The board of directors of Perrigo Company (NYSE:PRGO; TASE:PRGO) has unanimously rejected the offer by Mylan NV to buy all its shares for $29 billion. Two weeks after receiving the offer, the pharmaceutical company told the NYSE last night that it felt the offer made by Mylan at a 25% premium of its share price, does not reflect the true value of the company, and does not serve the shareholders' interests.

Perrigo's rejection of Mylan's offer came just hours after Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) offered to purchase Mylan for nearly $41 billion, a 21% premium on the pharmaceutical company's share price. Mylan had previously stated that it opposed takeover attempts from Teva, and preferred to buy Perrigo and create a global pharmaceutical company with an incomparable commercial platform.

Perrigo's rejection of Mylan's offer is good news for Teva, which implied its takeover of Mylan was contingent on the buyout not going ahead.

It is also good news for the Tel Aviv Stock Exchange (TASE), which had feared the Mylan-Perrigo merger going ahead and that Perrigo would subsequently delist from the market. Perrigo is the second most traded share on the TASE after Teva. Perrigo, led by chairman, CEO and president Joseph Papa, also has two manufacturing plants in Israel following its takeover of Agis Pharmaceuticals more than a decade ago.

Published by Globes [online], Israel business news - - on April 22, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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