Perrigo again rejects Mylan’s $27bn offer

“We are not opposed to any deal, just a bad deal”, Perrigo said. That strategy is possible under takeover law in Ireland, where Perrigo has been incorporated since buying Irish drugmaker Elan in 2013.

Mylan itself was quick to summarily dismiss an offer earlier this year from Teva Pharmaceuticals Ltd. that would have paid its shareholders a premium about four times what Mylan offered Perrigo, Brown said.

Mylan announced this intent in April, but within days, Perrigo executives rejected the $29 billion – or $205 per share – offer, saying it was too low.

Perrigo, based in Dublin, develops, manufactures, and markets over-the-counter consumer goods and pharmaceutical products worldwide.

It has more than $4 billion company in sales a year ago and has about 12,500 workers worldwide. Its shares are traded on the New York Stock Exchange under the ticker symbol PRGO.

Papa notes Perrigo shareholders have received a total shareholder return of more than 970 percent since 2007.

On Thursday, Perrigo’s board unanimously rejected the hostile bid to acquire the company for $27.1 billion, calling it inadequate, and recommended that investors don’t sell their stock to Mylan.

Perrigo also filed a lawsuit against Mylan in Manhattan federal court, seeking an injunction to block the closing of any tender offer unless Mylan corrects its alleged misleading statements to Perrigo shareholders about a potential merger.

Mylan CEO Heather Bresch commented, “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”.

Papa called the tender offer, which Mylan submitted directly to Perrigo shareholders this week, “very meager” and “insulting” and “not even in the ZIP code” for what the company is worth. If done, Perrigo shareholders would own approximately 40 percent of the combined company. “Approximately two-thirds of Mylan’s proposed consideration consists of Mylan stock, which we believe will face negative pressures going forward”.