Perrigo Shareholders Reject Hostile Takeover Bid

Mylan NV lost its $26 billion hostile bid for Perrigo Co. after a seven-month pursuit, a rare outcome in what has shaped up to be one of the most bitter takeover battles in decades.

Mylan this week warned shareholders of Perrigo that the company’s stock would suffer if the bid is rejected, saying it would drop its bid if it didn’t get enough votes Friday.

The pharmaceutical company needed at least 50% of Perrigo stock to be tendered into the offer for the deal to be successful.

The offer expired at 8 a.m. ET today.

Mylan has gapped open higher this morning and is now up 4.32 at $47.52 on above average volume.

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. We feel its strengths outweigh the fact that the company has had sub par growth in net income. It said late last month that that it could deliver better value than Mylan through a plan to cut costs and buy back stock.

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. Perrigo declined to comment, while representatives for Mylan did not immediately respond to requests for comment. That plan includes cutting 800 employees, or 6 percent of its global workforce.

The Wall Street Journal, citing “people familiar with the matter”, reported that Mylan’s efforts have fallen short. Mylan became part of a new company incorporated in the Netherlands but still runs its business out of its Canonsburg, Pennsylvania, near Pittsburgh.

Under the terms of the spurned tender offer, Perrigo investors would… Perrigo, based in Allegan, Michigan, combined with Ireland’s Elan Corp. and now lists its headquarters as Dublin.