Perrigo shares tumble on report that Mylan bid spurned

With the deadline for the offer expiring on Friday, Mylan said 58 million Perrigo ordinary shares had been validly tendered.

Mylan had made several takeover offers to Perrigo before going around its board and taking a bid directly to shareholders in September.

Perrigo shares are sinking in pre-market trading, while Mylan’s stock is soaring. Stock owners have until 8 a.m.to tender their shares for the cash-and-stock deal.

Now that Perrigo has apparently fought off a hostile takeover, it will continue operating as a stand-alone entity.

Perrigo, calling the offer grossly inadequate, had urged its shareholders to reject the takeover.

Drug maker Mylan, which is based in the Netherlands, announced this morning that its offer to acquire all of the issued and to-be-issued share capital of Perrigo, which operates its North American base in Allegan, has lapsed.

Perrigo reported a better-than-expected profit for the third quarter last month, and said it would lay off 6pc of its global workforce and buy back shares worth $2bn.

Over the past few weeks, generic pharmaceuticals manufacturer Mylan has held a major campaign in Israel to try and win over the Israeli investors who hold an estimated 10% of Perrigo. Mylan shares, meanwhile, rose 10 percent, or $4.30, to $47.50. While Mylan and Teva sought to grow larger through acquisitions, Walgreens Boots Alliance Inc. struck a deal to buy fellow drugstore chain Rite Aid Inc., and CVS Health Corp. agreed to take control of Target Corp.’s pharmacies and clinics.