Irish OTC firm Perrigo rejects Mylan’s raised bid

Earlier this month, Mylan offered to buy Perrigo in a deal valued at nearly $29bn, under which Perrigo shareholders would receive $205 per share.

However, board of directors from Perrigo have unanimously rejected the unsolicited takeover bid from Mylan, saying the offer substantially undervalues the company.

Mylan said that based on its closing stock price of $68.36 on 08 April 2015, the first day of market reaction to the initial proposal, the value of the new offer is $232.23 per Perrigo share.

Mylan executive chairman Robert Coury said: "With this enhanced offer, I look forward to meeting with Joe Papa and his team to finalize the implementation of this truly compelling combination, which is a win-win for both Mylan and Perrigo shareholders and all other stakeholders.

"Previously, Mylan filed for US anti-trust clearance, made a ‘hell or high water’ commitment with respect to obtaining this clearance and committed to a timetable for closing.

"We have also secured firm committed financing for our offer. All of this, together with today’s action, will result in a transaction that provides compelling value and maximum speed and certainty to Perrigo and its shareholders.

"Further, this is a transaction that can, and will, be completed and create a powerhouse company that will be an engine for growing shareholder and stakeholder value as Mylan has done consistently for many years."

According to Perrigo, based on Mylan’s unaffected price of $55.31 per share on 10 March 2015, the value of the revised offer is $202.20 per Perrigo share.

Earlier this month, Mylan had rejected Israel-based Teva Pharmaceutical’s bid to acquire the company for about $40.1bn.