Perrigo Asks Shareholders to Reject Mylan's Latest Bid
September 17 2015 - 7:50AM
Dow Jones News
Perrigo Co. on Thursday urged shareholders to reject Mylan NV's
hostile takeover bid, days after Mylan officially took its offer
directly to shareholders.
By launching the offer, Mylan bypassed Perrigo's management and
board, which have rebuffed its advances.
"I strongly urge you to protect your investment in Perrigo and
net tender your shares into Mylan's inadequate offer," wrote
Perrigo Chief Executive Joseph Papa in a letter to
shareholders.
The bid doesn't account for Perrigo's growth prospects and a
tie-up would also expose Perrigo shareholders to financial risks,
as about two-thirds of Mylan's bid consists of Mylan stock, "which
we believe will face negative pressures going forward," Mr. Papa
wrote.
Mylan is offering $75 in cash and 2.3 shares of Mylan for each
Perrigo share held, valuing Perrigo at about $27.41 billion based
on Wednesday's closing stock price. Shares of Perrigo have slipped
7.4% this month. The price tag compares with Mylan's previous offer
of about $35 billion.
Mylan in April publicly bid for Perrigo, saying a combination
would create a strong competitor in the quickly consolidating
pharmaceuticals sector. Perrigo has rejected Mylan's offers as too
low.
Both companies are generic-drug makers, but they focus on
different segments of the market. Perrigo makes cold and allergy
medicines and infant formulas, including some sold under chain
brands at Walgreens Boots Alliance Inc. and Wal-Mart Stores
Inc.
Mylan, meanwhile, concentrates on generic drugs, but it is best
known for its branded EpiPen allergic-reaction treatment, which may
soon face pressure from potential competitors.
Perrigo shareholders would own about 40% of the combined company
under the terms of the offer, which is set to expire Nov. 13.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 17, 2015 07:35 ET (11:35 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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