Perrigo bats away raised Mylan bid
pharmafile | April 30, 2015 | News story | Sales and Marketing | Mylan, Perrigo, Teva, Vigodman, merger
Perrigo has rejected an updated $34.1 billion takeover bid from Mylan, whilst Teva has also written an open letter in an attempt to secure swallowing up the latter firm.
Ireland-based Perrigo has knocked-back Mylan’s revised and unsolicited offer to acquire it for $75.00 per share in cash (and 2.3 Mylan ordinary shares for each ordinary Perrigo share).
This follows Mylan’s previous unsolicited proposal earlier in the month of $205.00 per share that “significantly undervalued the company and its future growth prospects and was not in the best interests of Perrigo’s shareholders”.
But Perrigo now says Mylan continues to propose a price lower than the previously rejected one. Based on Mylan’s unaffected price of $55.31 per share in March, the last day of trading prior to widespread public speculation that Teva was considering an offer for Mylan – it notes the value of the revised offer is in fact $202.20 per Perrigo share.
It has now ‘strongly advised’ its shareholders to “take no action in relation to the offer” from the Netherlands-registered firm that has its UK headquarters in Potters Bar.
Mylan itself has only recently just firmly rejected an acquisition bid from Teva, whilst its own tender for Perrigo was being turned down. Teva made an offer to buy the US generics firm for around $40 on Monday, in a move that would create the world’s largest generic company.
Saying it ‘grossly undervalued the company’, its executive chairman Robert Coury hit out Israel-based Teva, adding Mylan did not want to be paid with Teva’s high-risk stock whilst also raising issues around antitrust.
Teva chief executive Erez Vigodman has now responded publically on the matter in his own letter, taking exception to such accusations.
“I fully agree with you that it would have been preferable to have engaged in a private discussion to explore this transaction. However, you left us no choice but to make our proposal public after you publicly rejected a potential offer before it had even been made.
“It is hard to reconcile that pre-emptive rejection, your announcement of a firm offer for Perrigo before your board of directors even responded to the Teva proposal and the tone of your letter to me with the proper exercise of fiduciary responsibilities under any legal or business framework,” Vigodman says.
Brett Wells
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