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news.Mylan has started its formal offer to acquire all outstanding ordinary shares of Perrigo Company, which manufactures private label over-the-counter (OTC) pharmaceuticals.
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Several reports suggest that the offer for the takeover bid is about $27bn, which is re-offered to Perrigo after its rejection to the earlier proposal.
Mylan is offering $75 in cash and 2.3 shares for each Perrigo share held, valued at about $187.
Perrigo shareholders will own about 40% of the combined company if the deal is finalized.
Perrigo said its will assess Mylan’s offer and advise shareholders within 10 days. The company on the other hand has insisted the shareholders not to take any action on the offer until the offer is reviewed by the board.
Mylan CEO Heather Bresch said: "Together, Mylan and Perrigo will create a unique and powerful force in our industry, with the scale, breadth and reach to create significant and sustained value for shareholders and all other stakeholders.
"While we believe Perrigo represents the most attractive entry point for Mylan to apply its global manufacturing and supply chain expertise and broad commercial reach to the over-the-counter category, Mylan is committed and well-positioned to pursue the OTC segment independently given its global scale and capabilities."
Headquartered in Ireland, Perrigo manufactures OTC products and supplies infant formulas for the store brand market.
The company provides generic extended topical prescription products and receives royalties from Multiple Sclerosis drug Tysabri.
Mylan manufactures and markets about 1,400 different products to retail, wholesale, government and institutional customers.
Image: Mylan is offering $75 in cash and 2.3 shares for each Perrigo share held, valued at about $187. Photo: courtesy of adamr/FreeDigitalPhotos.net.