Perrigo to bid for Elan - report

"Reuters": Perrigo is preparing to submit a takeover bid for Ireland's Elan, which has a market cap of $7.6 billion.

"Reuters" reports that Perrigo Company (NYSE:PRGO; TASE:PRGO) is preparing to submit takeover bids for Ireland's Elan Corporation plc (LSE; NYSE; Dublin: ELN). Forest Laboratories Inc. (NYSE: FRX) is also considering a bid.

"Reuters" quoted sources as saying that companies like Perrigo and Forest are particularly interested in Elan for the tax savings that come from being domiciled in Ireland, where the corporate tax rate is 12.5%.

Elan recently sold the rights to its multiple sclerosis treatment Tysabri, a rival of Teva Pharmaceutical Industries Ltd.'s (NYSE: TEVA; TASE: TEVA) Copaxone, and receives royalties on sales.

Elan, which has a market cap of $7.6 billion, recently rejected a takeover bid at a company value of $8 billion. For Perrigo, the acquisition of Elan would be an order of magnitude greater than its usual acquisitions. Its biggest acquisition in recent years was infant formula maker PBM Nutritionals, and Israel's Agis Pharmaceuticals, each for $800 million. Perrigo has made four acquisitions for a total of $823 million in the past year.

Perrigo, which has a market cap of $12.2 billion, recently completed a $600 million debt issue.

Published by Globes [online], Israel business news - www.globes-online.com - on July 25, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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