Mylan (MYL) is considering an improved offer to shareholders of Perrigo (PRGO) with the aim of acquiring the company and thus heading off the hostile bid for Mylan from Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA), Bloomberg reports.
According to Bloomberg, Mylan chairman Robert Coury has said in private conversation that his company's management is considering improving its latest offer to Perrigo shareholders in order to reduce their risk yet further.
Coury is also reported as having told investors that he is determined to repel Teva's bid.
After the Perrigo board rejected Mylan's original offer, Mylan raised it from $205 to $222 per share. The improvement in the bid, which consists of a cash payment of $60 and the rest in shares - 2.2 Mylan shares - mainly arose however from the higher value of Mylan's shares, which shot up because of the bid from Teva (and beforehand because of expectations of such a bid), and Perrigo's board swiftly rejected this offer as well.
While Perrigo rejected the original bid on the grounds that it undervalued the company, it rejected the second one on the grounds that it was actually lower than the first, if the value of Mylan's shares was calculated according to their price before Teva made its bid.
Published by Globes [online], Israel business news - www.globes-online.com - on May 12, 2015
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