Perrigo shareholders reject Mylan takeover bid

Mylan says its cash-and-stock offer failed to garner enough interest from Perrigo shareholders to complete the deal by a Friday morning deadline.

Mylan’s offer of $75 plus 2.3 Mylan shares was worth about $174.36 per share, based on Mylan’s Thursday close of $43.20, or about $26 billion for all outstanding Perrigo shares. The publication also stated that the past seven months has been characterized as almost a year of “fevered, at times contentious” deal-making.

Mr Coury said last week that, while the purchase of Perrigo was good for both companies, Mylan could survive without it. He pointed to the very strong market position of EpiPen, Mylan’s biggest-selling branded product, which treats emergency anaphylactic reactions to allergens. On average, analysts predict that Mylan NV will post $4.30 earnings per share for the current fiscal year.

Mylan N.V. (NASDAQ: MYL; TASE) today announced that its offer to acquire all of the issued and to be issued share capital of Perrigo Company plc (NYSE: PRGO; TASE) has lapsed.

Perrigo, meanwhile, joins a small club of companies that have successfully beaten back a tender offer on persuasion alone, without traditional corporate defenses. Irish takeover rules give boards of target companies few tools to shield themselves or find a “white knight” buyer, leaving Perrigo at the mercy of shareholders. In a bid to satisfy investors, the company has unveiled a share buyback and cost cuts, and now must deliver on those promises.

The deal’s rejection will now focus investors’ attention on Perrigo’s standalone strategy.

Mylan’s pursuit for Perrigo has been one of the most dramatic takeover attempts in the industry, and the longest such pursuit this year.

Having done so, Perrigo must now confront its independent future.

“Once we get beyond this Mylan situation, we’ll look at other opportunities as far as M&A is concerned”, Papa told reporters in Tel Aviv last month.