Perrigo falls after rejecting improved Mylan offer

Joseph Papa
Joseph Papa

Both Perrigo and Teva are down on the Tel Aviv Stock Exchange following the Independence Day break.

After US-Israeli pharmaceuticals company Perrigo (PRGO) rejected Mylan's (MYL) takeover bid last Tuesday, on Friday, Mylan announced an improved offer worth $31.8 billion. The original offer was $29 billion, or $205 per share.

Mylan is new offering $60 cash and 2.2 of its shares for each Perrigo share, valuing Perrigo shares at about $222 each.

Mylan sees the annual pre-tax operational synergies from a merger between the two companies of $800 million by the end of year four following the consummation of the offer.

Perrigo has announced its rejection of the new bid.

Mylan chairman Robert Coury said, 'While we are disappointed by the decision of the Perrigo board to reject our proposal without entering into discussions thus far, we are still hopeful and confident that we can engage with their Board about our offer and how to best bring our organizations together. "As evidenced by today's Rule 2.5 announcement, we remain steadfast in our offer to acquire Perrigo, given the substantial opportunities we anticipate it will create for our company, shareholders and other stakeholders. We will not be distracted from the pursuit of this exciting, value-creating combination."

Mylan CEO Heather Bresch said, "The combination of Mylan and Perrigo demonstrates clear and compelling industrial logic and will generate significant value for customers, patients, employees, stockholders and other stakeholders through the creation of a one-of-a-kind global healthcare company that has complementary businesses and cultures, unmatched scale in its operations, one of the industry's broadest and most diversified portfolios, and immense reach across distribution channels around the world. This unique infrastructure will be able to maximize evolving industry dynamics and capitalize on key trends, including the unprecedented number of Rx to OTC switches underway."

Mylan has itself rejected a $41 billion bid from Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA).

On the Tel Aviv Stock Exchange this morning following the long Independence Day weekend, Teva's share price is down 1.71%, at NIS 252.7, and Perrigo is down 2.41%, at NIS 748.8.

Published by Globes [online], Israel business news - - on April 26, 2015

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

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