Mylan’s Bid for Perrigo an Attempt to Stay Ahead of the Curve

The Wall Street Journal reported that Mylan NV’s (NASDAQ:MYL) unsolicited bid for Perrigo Company plc (NYSE:PRGO) shows that the company is looking to “stay ahead of the frantic deal-making that is reshaping the drug industry.” The news outlet suggests that Mylan is trying to avoid becoming a target itself.

As quoted in the press release:

Mylan said on Wednesday it had proposed a cash-and-stock deal worth $205 a Perrigo share, which represents more than a 25% premium to Perrigo’s closing stock price on Friday. Perrigo reacted coolly, saying its board would meet to discuss the proposal and cautioning that “there can be no certainty that any offer will be made.”

The proposal appeared to come abruptly. Mylan said that the companies had held “many conversations over the years,” but said it sent a letter to Perrigo CEO and ChairmanJoseph Papa just Monday proposing a transaction. Mylan said it still needed to do due diligence and expressed hope Perrigo would embrace the approach.

Robert Coury, executive chairman at Mylan, commented:

We have great respect for Perrigo’s board and management team and what they have built. We look forward in the weeks ahead to working with them to capitalize on this tremendous opportunity and working together to create a unique leader with a one-of-a-kind profile in our industry.

Click here to read the full report from The Wall Street Journal.