Mylan N.V. (Nasdaq: MYL) has made a huge offer to acquire Perrigo Company (NYSE:PRGO; TASE:PRGO) at $205 per share. Based on the 140.8 million shares traded by Perrigo on January 30, this would give any deal a value of $29 billion, if implemented. Perrigo's shares are also traded on the Tel Aviv 25 Index, and if a deal were to be completed and the pharmaceutical company was to delist this would be a major blow for the TASE, as Perrigo is one of the market's most heavily traded stocks.
The offer was presented to Perrigo chairman, president and CEO Joseph Papa two days ago, and represented a 25% premium on Perrigo's closing share price on April 3. "Globes" has previously revealed that Perrigo had hired an investment bank to investigate options for a merger with a major pharmaceutical company.
Perrigo has been operating in Israel and traded on the TASE since its acquisition of Agis Pharmaceuticals. Perrigo has two plants in Israel in Yerucham and Ramat Hovav near Beer Sheva in the Negev with 1,200 employees. The sale of the company would add uncertainty to these operations.
Mylan said that such an acquisition would create a leading and diverse global pharmaceutical company on an unrivalled commercial platform.
Perrigo's share price jumped 19.5% today on the NYSE to $196.52, giving a market cap of $27.7 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on April 8, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015