The attempts by generic pharmaceutical manufacturer Mylan N.V. (Nasdaq: MYL; TASE: MYL) to acquire rival Perrigo Company (NYSE:PRGO; TASE:PRGO) were given a boost last night when the US antitrust agency the Federal Trade Commission (FTC) approved a potential merger. Perrigo, for its part continues to oppose the takeover on the grounds that it does not provide shareholders with its full value.
Mylan's offer includes 2.3 shares and $75 cash for each Perrigo share. This amounts to about $180 per share or a 13% premium on Perrigo's current market price for a total deal of $26.5 billion. Perrigo vehemently opposes the deal and recommends shareholders to follow suit. The offer is valid until November 13.
FTC's approval, on condition that Mylan sell the rights to seven generic pharmaceuticals, means that the final regulatory obstacle has been surmounted en route to the possible takeover.
Mylan chairman Robert Coury said, "We are delighted to have received FTC clearance, making our offer for Perrigo now unconditional other than the one final step, which now rests solely in the hands of Perrigo shareholders. We are very confident that Perrigo shareholders will support this transaction by tendering their shares by 8:00 am ET on Nov. 13, 2015."
Coury is currently in Israel in attempts to persuade Perrigo shareholders to support his company's bid. He range the opening bell on the Tel Aviv Stock Exchange this morning as Mylan's share price rose 2.6% during its first session on the Israeli capital market. Mylan has dual-listed on the TASE in its efforts to persuade Israeli investors to support its takeover bid.
Published by Globes [online], Israel business news - www.globes-online.com - on November 4, 2015
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