Coury shocked Perrigo takeover has become hostile

Robert Coury
Robert Coury

The Mylan chairman said he talked to Perrigo CEO Joseph Papa and even discussed who would head the merged company.

In a meeting today with reporters at the Tel Aviv Stock Exchange (TASE), Mylan N.V. (Nasdaq: MYL; TASE: MYL) chairman Robert Coury said that he refused to call the situation an attempt at a hostile takeover. He remarked that he and Perrigo Company (NYSE:PRGO; TASE:PRGO) CEO Joseph Papa had spoken many times, and had even discussed particulars such as who would be CEO and who would be CFO in the event of a merger between the two companies. He commented that he was shocked and embarrassed that the situation had reached the current level of enmity.

Coury is visiting Israel on the occasion of Mylan's shares being listed for trading on the TASE, and took part in a ceremony at the beginning of trading. He then met with Israeli investors in an effort to persuade them to accept Mylan's offer to purchase for Perrigo's shares. Investment institutions in Israel own 10% of Perrigo's shares.

Mylan's listing on the TASE follows its takeover bid for Perrigo, which is also listed on the TASE. As a dual-listed company, Mylan is now exempt from publishing a prospectus, and the Tel Aviv District Court paved the way for its dual-listing last week by dismissing a Perrigo petition for a restraining order in the matter.

Coury sounded encouraged today, given his company's listing on the TASE. He said that Israel was a natural step for continuing Mylan's expansion, because it had opportunities, technology, biotechnology, and intellect. He remarked that the District Court judge had not even known how much she had contributed to Israel, adding that it was a legal victory for Israel, not for Mylan, and showed how open Israel was to participation in the global market. He said that people like that he could feel comfortable participating here, and he was proud to be part of this historic decision.

Mylan is offering $75 in cash and 2.3 Mylan shares for each Perrigo share, in other words, $182 per share, constituting a 14% premium on the current Perrigo market price, and making the total deal worth $26.7 billion. Perrigo is opposing the takeover attempt, and is trying to counter it. Papa visited Israel last week in an effort to persuade investors to reject what Coury is offering. Coury called on Papa to meet with him, saying they should talk and reach an agreement that would be good for the employees and shareholders of both companies. He called Papa a real mensch, quoting him as saying in the past what a good company Mylan was when it bought Perrigo shares. He stated that he still hoped that Papa would come to the negotiating table.

Coury said he was confident that Mylan would reach the 50% level of support from the shareholders to take control of Perrigo, but was less sure of getting the 80% support that would enable Mylan to attain full ownership of Perrigo, at least at this stage. The offer to purchase is valid until November 13.

Published by Globes [online], Israel business news - www.globes-online.com - on November 4, 2015

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

Robert Coury
Robert Coury
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